EUR/USD stays bid and could test 1.1125 – UOB

The pair looks bid at/around the 1.1100 area and it could attempt a move to 1.1125 in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “EUR traded between 1.1071 and 1.1108, narrower and higher than our expected sideway-trading range of 1.1055/1.1100. The underlying tone has improved somewhat and this would likely translate into a slow grind higher towards 1.1125. For today, the next level at 1.1150 is unlikely to come into the picture. Support is at 1.1090 followed by 1.1070.”

Next 1-3 weeks: “There is not much to add to add to the update from yesterday (04 Nov, spot at 1.1080). As highlighted, while it is too early to expect a sustained advance, EUR could test the strong 1.1125 resistance. However, the rapid retreat from the NY hour peak of 1.1115 has weakened the underlying tone somewhat. That said, only a break of 1.1035 (‘strong support’ level was at 1.1020 yesterday) would indicate the current upward pressure has eased. Until there is a break of the ‘strong support’ level, another ‘stab’ at 1.1125 is not ruled out just yet.”