EUR/USD now looks to 1.1830 – UOB

FX Strategists at UOB Group noted EUR/USD could now attempt a move to the 1.1830 area in the next weeks.

Key Quotes

24-hour view: “Our expectation for EUR to ‘trade sideways’ was incorrect as it rose to a high of 1.1797 before closing on a strong note at 1.1781 (+0.58%). While rapid improvement in momentum suggests further EUR strength is likely, overbought conditions could ‘limit’ any gains to a test of the major resistance at 1.1830. For today, EUR is unlikely to challenge the next resistance at 1.1870. Support is at 1.1765 but the stronger level is at 1.1740.”

Next 1-3 weeks: “We have held the same view since last Wednesday (30 Sep, spot at 1.1745) wherein EUR ‘is in a consolidation phase’ but ‘is likely to probe the top of the expected consolidation range of 1.1630/1.1830 first’. As EUR approaches 1.1830, upward momentum has improved, albeit not by much. From here, there is room for EUR to edge above 1.1830 and move towards the next resistance at 1.1870. For now, a sustained advance above this level appears unlikely. On the downside, a break of 1.1715 (‘strong support’ level) would indicate the current upward pressure has eased.”