EUR/USD: Extra gains likely in the near-term – UOB

FX Strategists at UOB Group noted EUR/USD could edge higher in the near-term, although a move to 1.1880 is not favoured for the time being.

Key Quotes

24-hour view: “EUR popped to a high of 1.1768, plunged to 1.1602 before snapping back up to end the day slightly higher at 1.1722 (+0.09%). The strong bounce from the low appears to have scope to push above the 1.1768 high but for today, the resistance at 1.1855 is not expected to come into the picture (there is another resistance 1.1820). Support is at 1.1680 followed by 1.1630.”

Next 1-3 weeks: “There is not much to add to the update from yesterday (04 Nov, spot at 1.1670). As highlighted, further EUR strength is not ruled out but it is too soon to expect a move towards last month’s top at 1.1880. On a shorter-term note, 1.1855 is already quite a strong level. All in, the bias for EUR appears to be tilted to the upside with 1.1550 acting as a key support.”