FX Strategists at UOB Group now see EUR/USD testing the 1.1470 stage within the subsequent weeks.
24-hour view: “Whereas we anticipated EUR to ‘transfer above 1.1395’ yesterday, we highlighted that ‘it’s left to be seen if it will probably preserve a foothold above this main resistance stage’. Nevertheless, EUR blew previous 1.1395 earlier than closing on a powerful be aware at 1.1442 (+0.69%). Stable upward momentum means that EUR may strengthen additional to 1.1470. The following resistance at 1.1515 is nonetheless, doubtless out of attain. Help is at 1.1420 adopted by 1.1395.”
Subsequent 1-3 weeks: “Yesterday (12 Jan, spot at 1.1370), we highlighted that EUR ‘seems poised to maneuver above 1.1395’. We added, ‘a transparent break of this stage may result in an advance in direction of 1.1440’. Whereas our view for a break of 1.1395 was appropriate, we didn’t fairly anticipate the fast method by which EUR soared above 1.1440 (excessive of 1.1452). The stable build-up in momentum coupled with the break of the robust resistance at 1.1395 signifies that EUR is more likely to proceed to march greater. The following resistance is at 1.1470 adopted by 1.1515. The present EUR energy is undamaged so long as it doesn’t transfer beneath the ‘robust assist’ stage at 1.1370 (stage was at 1.1315 yesterday).”