EUR/USD NOW LOOKS TO TEST 1.1680 – UOB

In opinion of FX Strategists at UOB Group, EUR/USD could be headed to the 1.1680 level in the next weeks.

KEY QUOTES

24-hour view: “We highlighted yesterday that ‘the rapid pullback from the high coupled with overbought conditions indicates that EUR is unlikely to strengthen further’ and we expected EUR to ‘trade sideways between 1.1605 and 1.1655’.EUR subsequently traded between 1.1615 and 1.1658. Upward momentum has improved just a tad and the bias for today is on the upside. That said, barring a surge in momentum, any advance is unlikely to challenge the major resistance at 1.1680. Support is at 1.1630 followed by 1.1615.”

Next 1-3 weeks: “Our view from yesterday (20 Oct, spot at 1.1630) still stands. As highlighted, EUR could consolidate for a couple of days first but it is likely to head to the next major resistance at 1.1680 later on. On the downside, a breach of 1.1590 (‘strong support’ level previously at 1.1570) would indicate that the EUR strength that started late last week has run its course. Looking ahead, if EUR breaks clearly above 1.1680, the next level to focus on is at 1.1710.”