EUR/USD rallies could fail near 1.12 – UOB

A move beyond 1.1195 in the near term appears unlikely, according to FX Strategists at UOB Group.

Key Quotes

“The major 1.1105/10 support highlighted in recent updates remains unchallenged as EUR rebounded from a low of 1.1122. The rather rapid rebound from the low appears to have scope to extend higher but at this stage, a move beyond 1.1195 is unlikely (the next resistance at 1.1215 is a much stronger level). Support is at 1.1145 followed by 1.1120. The 1.1105/10 support is unlikely to come into the picture for now”.

“We indicated yesterday that a shift to a bearish phase would not surprising unless EUR can “move and stay above 1.1175 within these few days”. The overnight high has been 1.1169 and we continue to hold the view that the immediate risk is greater on the downside. Only a NY closing above 1.1175 would indicate that the immediate downside pressure has eased. In the meanwhile, 1.1120 is expected to offer solid support ahead of the critical 1.1105/10 level”.