FX Strategists at UOB Group now sees EUR/USD going through some near-term consolidation forward of a possible transfer past 1.1500 the determine.
24-hour view: “We highlighted yesterday ‘strong upward momentum means that EUR might strengthen additional to 1.1470’. We added, ‘the following resistance at 1.1515 is nevertheless, seemingly out of attain’. Our view was not mistaken as EUR rose to 1.1481 earlier than easing off. Upward momentum has waned considerably and this coupled with overbought situations means that EUR is unlikely to strengthen a lot additional. For at this time, EUR is extra more likely to consolidate and commerce between 1.1435 and 1.1485.”
Subsequent 1-3 weeks: “Yesterday (13 Jan, spot at 1.1440), we highlighted that EUR ‘is more likely to proceed to march increased’. We indicated that ‘the following resistance is at 1.1470 adopted by 1.1515’. EUR subsequently rose to 1.1481 earlier than easing off. We proceed to count on EUR to maneuver increased in direction of 1.1515 despite the fact that overbought shorter-term situations might result in a few days of consolidation first. Total, solely a breach of 1.1390 (‘sturdy help’ degree was at 1.1370 yesterday) would point out that the present upward strain has eased.”