EUR/USD still faces potential extra gains – UOB

FX Strategists at UOB Group noted EUR/USD is still seen attempting a move to 1.1845 in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘while already in overbought territory, the advance in EUR has room to test 1.1820’. Our expectations did not materialize as EUR traded in a relatively quiet manner between 1.1766 and 1.1800. The current movement is likely part of a consolidation phase. For today, EUR is likely to trade between 1.1755 and 1.1795.”

Next 1-3 weeks: “Our update from yesterday (16 Aug, spot at 1.1795) still stands. As highlighted, the current movement is viewed as part of a corrective rebound and EUR could edge higher to 1.1845. The prospect for a sustained advance above this level is not high for now. On the downside, a breach of 1.1735 (‘strong support’ level) would indicate that the current upward pressure has eased.”