FX Strategists at UOB Group now see EUR/USD testing the 1.1470 level in the next weeks.
24-hour view: “While we expected EUR to ‘move above 1.1395’ yesterday, we highlighted that ‘it is left to be seen if it can maintain a foothold above this major resistance level’. However, EUR blew past 1.1395 before closing on a strong note at 1.1442 (+0.69%). Solid upward momentum suggests that EUR could strengthen further to 1.1470. The next resistance at 1.1515 is however, likely out of reach. Support is at 1.1420 followed by 1.1395.”
Next 1-3 weeks: “Yesterday (12 Jan, spot at 1.1370), we highlighted that EUR ‘appears poised to move above 1.1395’. We added, ‘a clear break of this level could lead to an advance towards 1.1440’. While our view for a break of 1.1395 was correct, we did not quite expect the rapid manner by which EUR soared above 1.1440 (high of 1.1452). The solid build-up in momentum coupled with the break of the strong resistance at 1.1395 indicates that EUR is likely to continue to march higher. The next resistance is at 1.1470 followed by 1.1515. The current EUR strength is intact as long as it does not move below the ‘strong support’ level at 1.1370 (level was at 1.1315 yesterday).”