EUR/USD now looks to 1.1130 – UOB

FX Strategists at UOB Group noted that a daily close above 1.1130 should mitigate the downside bias in EUR/USD.

Key Quotes

24-hour view: “EUR traded sideways within 1.1068/1.1116 range on Fri, well within our expectations of 1.1050/1.1130. Most of the downside momentum is largely neutralized. For now, it seems EUR would most likely consolidate within 1.1070/1.1140 before waiting for cues of the next direction”.

Next 1-3 weeks: “EUR surprised us by closing above 1.1100 on Fri, a level we deemed a ‘strong hurdle’ to overcome. That said, it is probably too early to conclude that EUR is out of the woods. Only a NY close above 1.1130 would negate the ‘downside bias’ and indicate that the recent weakness in EUR has stabilized and that 1.1025 low on 1-Aug would be near/mid term low. Beyond 1.1130, we can expect resistance at 1.1145 and 1.1165. On the downside, 1.1070 and 1.1025 should offer strong supports”.