EUR/USD: Sustained advance is seen above 1.2200 – UOB

Sustainable gains in EUR/USD await once 1.2200 is cleared, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected EUR to ‘trade sideways between 1.2125 and 1.2180’. However, EUR briefly dropped to 1.2105 before rebounding sharply to end the day at 1.2164 (+0.12%). Upward momentum has improved a tad and there is room for EUR to test the major resistance at 1.2200. The next resistance at 1.2230 is unlikely to come into the picture. Support is at 1.2145 followed by 1.2120.”

Next 1-3 weeks: “On Monday (22 Feb, spot at 1.2125), we highlighted that the outlook is mixed and we expected EUR to ‘trade between 1.2050 and 1.2200 for a period of time’. Shorter-term momentum has improved but EUR has to close above 1.2200 before a sustained advance can be expected (next resistance is at 1.2230). The prospect for a sustained advance above 1.2200 is not high but would remain intact as long as 1.2080 is not taken out.”