EUR/USD faces strong resistance at 1.2010 – UOB

FX Strategists at UOB Group noted EUR/USD is expected to meet the next hurdle of note around 1.2010 in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘while conditions remain overbought, the risk is still on the upside’. We added, ‘any further advance in EUR is expected to face solid resistance at 1.2010’. However, EUR only managed to eke out a fresh high of 1.1993 before easing off. Momentum is beginning to wane and EUR is unlikely to strengthen. For today, EUR is more likely to trade sideways between 1.1935 and 1.1985.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (14 Apr, spot at 1.1950). As highlighted, ‘improved momentum is likely to lead to further EUR strength and the next major resistance is at 1.2010’. Overbought shorter-term conditions could slow the pace of advance but a break of 1.2010 would not be surprising. The next resistance is at 1.2065. On the downside, a breach of 1.1915 (‘strong support’ level was at 1.1875 yesterday) would indicate that the EUR strength that started earlier last week (see annotations in the chart below) has run its course.”