EUR/USD a test of 1.0870/75 losses traction – UOB

FX Strategists at UOB Group noted a potential test of the 1.0870/75 band seems to have run out steam for the time being.

Key Quotes

“EUR moved higher towards last month’s peak near 1.0825/30 but eased of after hitting a high of 1.0825. The undertone is still positive and a move above 1.0825/30 would not be surprising but based on the current momentum, the next major resistance at 1.0870/75 is not expected to come into the picture (intervening resistance at 1.0850). Support is at 1.0770 but only a move below 1.0745 would indicate that a temporary top is in place”.

“The 1.0825/30 level that we have talked about since Thursday was finally met with an overnight high of 1.0825. Shorter-term upward momentum is slowing down and while a move above 1.0825/30 would not be surprising, the odds for a break above last December high of 1.0870/75 are not high. Support is at 1.0745 but only a move back below 1.0715 would indicate that a short-term top is in place”.