EUR/USD expected to extend gains above 1.1180 – UOB

FX Strategists at UOB Group noted EUR/USD is seen advancing further on a convincing breakout of the 1.1180 region.

Key Quotes

24-hour view: “In yesterday update, we are of the view that barring a move below the strong 1.1070 support (overnight low 1.1078), EUR could edge higher towards 1.1130. EUR traded to a high of 1.1151 overnight and rallied further in early Asia trade today. The undertone is positive and further gains looks likely. Resistance is at 1.1180 followed by another strong level at 1.1200, with the latter unlikely to be taken out easily at least for today. On downside, supports are at 1.1115 and 1.1095”.

Next 1-3 weeks: “With the rally in EUR overnight, the positive phase in EUR that started earlier this month is starting to show signs of life again. However, set against the backdrop of flagging upside momentum, EUR has to make strong headways towards 1.1200 within the next few sessions else the up-move may start to falter again. An immediate level on the upside is Oct’s high of 1.1179 which EUR needs to punch through convincingly. On the downside, support is at 1.1110 and a move below 1.1070 would mean that upside pressure has eased”.