EUR/USD needs to clear 1.2536 for extra gains – UOB

In view of FX Strategists at UOB Group, the pair needs to surpass the 1.2530 region in order to extend the bullish outlook.

Key Quotes

24-hour view: “The major 1.2536 resistance was unthreatened as EUR eased off rapidly from a high of 1.2518 last Friday. The pull-back from the high has scope to extend lower but 1.2380 is expected to offer solid support (minor support is at 1.2410). Resistance is at 1.2485 followed by the high near 1.2520”.

Next 1-3 weeks: “While EUR lost ground against USD last Friday as other major currency pairs, the decline was relatively mild. That said, upward momentum is beginning to wane and in order to move into ‘fresh’ bullish territory, EUR has to stage a push higher and stay above last month’s 1.2536 peak within these few days or the risk of a short-term top would increase quickly. To put it another way, the longer EUR stays below 1.2536, the higher the risk of a short-term top. On the downside, ‘stop-loss’ remains unchanged at 1.2335 for now but a break 1.2380 would serve as a pre-indication that a top is imminent”.