According to UOB Group FX strategists Quek Ser Leang and Lee Sue Ann, the recent boost in momentum has increased the likelihood of the Euro (EUR) reaching 1.1275.
EUR Expected to Consolidate Before Reaching Target
24-HOUR VIEW: Despite expectations for EUR to strengthen towards 1.1225, the currency traded between 1.1150 and 1.1201, closing at 1.1161. EUR is now in a consolidation phase and is likely to trade in a range of 1.1140/1.1190 today.
1-3 WEEKS VIEW: Following a surge last Friday, EUR is on track to reach 1.1275. While short-term overbought conditions may result in a few days of consolidation, the overall positive view on EUR remains as long as the strong support level at 1.1105 is not breached.
Analysis and Recommendation
The Euro’s momentum is on the rise, with a target set at 1.1275. Traders should keep an eye on the support level at 1.1105 to confirm the positive outlook on EUR. While short-term consolidation may occur, the overall trend is towards further strengthening of the Euro against other currencies.