Set to break 1.1200 – UOB Group

Euro (EUR) could break above 1.1200 but is unlikely to reach 1.1225. Longer-term, rising momentum has increased the likelihood of the EUR hitting 1.1275, note UOB Group FX strategists Quek Ser Leang and Lee Sue Ann.

Bulls may test 1.1200 in the short term

24 HOURS: Yesterday, we indicated that the EUR “appears to have entered a consolidation phase and is likely to trade in a range of 1.1140/1.1190”. Our view was not wrong, although the EUR traded in a narrower range of 1.1150/1.1190, ending on a firm note at 1.1184 (+0.21%). The upward momentum has increased, though not by much. EUR could break above 1.1200 today, but the next resistance at 1.1225 is likely out of reach. On the downside, support levels are at 1.1165 and 1.1145.”

WEEKS 1-3: “After the EUR rallied last Friday, we indicated on Monday (26 August at 1.1185) that ‘increasing momentum has increased the likelihood of the EUR reaching 1.1275.’ We will be of the same opinion, provided the “strong support” at 1.1105 (no change in level) is not breached.”