EUR/USD: Outlook remains unclear – UOB

EUR/USD is still seen within a consolidative phase in the near term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We did not anticipate the strong rise in EUR to 1.1364 last Friday (we were expecting sideway-trading). The sharp and swift advance appears to have room to extend but in view of the overbought conditions, the major resistance at 1.1395 is unlikely to come under threat (1.1375 is already quite a strong level). Support is at 1.1335 but only a breach of 1.1320 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “We have held the same view since last Tuesday (04 Jan, spot at 1.1305) where the outlook for EUR is unclear and we expected EUR to trade between 1.1240 and 1.1395. There is no change in our view for now even though after the sharp rise to 1.1364 last Friday, upward momentum has improved a tad. Looking ahead, EUR has to close above 1.1395 before a sustained rise can be expected.”