A push to 1.1275 – UOB Group is possible

The Euro (EUR) is likely to trade in a range between 1.1085 and 1.1155. Solid momentum points to further EUR strength; It remains to be seen whether the 2023 high of 1.1275 is within reach, note UOB Group FX strategists Quek Ser Leang and Peter Chia.

Momentum may take EUR/USD above 1.1155

24-HOUR OUTLOOK: We expected the EUR to ‘trade in a higher 1.1110/1.1180 range’ yesterday. However, it instead traded in a lower range between 1.1095 and 1.1164, closing at 1.1112 (-0.34%). The price action is probably part of a range trading phase. Today, we expect the USD to trade between 1.1085 and 1.1155.”

WEEKS 1-3: “Our view from yesterday (22 August 1.1155) remains unchanged. As indicated, solid momentum after recent price action indicates a likely upside for the EUR. However, it remains to be seen whether the 2023 high of 1.1275 is within reach in the next two weeks. Overall, we will have a positive view on the euro, provided that the “strong support” level at 1.1045 (no change to the “strong support” level) is breached.”