Bulls poised to test 1.1155 – UOB Group

Room for the euro (EUR) to test 1.1155; a sustained break above this level seems unlikely. In the longer term, the EUR is likely to continue rising, but it is unclear whether it has enough momentum to break above the YTD high near 1.1200, note UOB Group FX strategists Quek Ser Leang and Lee Sue Ann.

Above 1.1155 the bulls can move towards 1.1200

24-HOUR REVIEW: “Yesterday, EUR rallied and closed strongly at 1.1132 (+0.51%). Strong momentum suggests that there is room for EUR to test 1.1155. A sustained break above this level seems unlikely and the year-to-date high near 1.1200 is not expected to be threatened. Support levels are at 1.1105 and 1.1085.”

1-3 WEEK VIEW: “After falling to a low of 1.1001 in the middle of last week, the EUR recovered strongly and reached a high of 1.1137 yesterday. Upside momentum has increased. From here, the EUR is likely to continue rising, but it is currently unclear whether there is enough momentum to break above the year-to-date high near 1.1200. To maintain momentum, the EUR needs to stay above 1.1040.”