EUR/USD bullish, scope for a test of 1.1800 – UOB

In view of FX Strategists at UOB Group, the pair’s perspective stays bullish and could attempt a visit to the 1.1800 region in the next weeks.

Key Quotes

“EUR soared and sliced through the major 1.1710 resistance to hit an overnight high of 1.1739. While this pair is clearly in overbought territory, another push higher towards 1.1770 would not be surprising (next major resistance at 1.1800 is likely out of reach for today). Support is at 1.1690 followed by 1.1660. The latter level is expected to be strong enough to hold any intraday pullback”.

“We warned of the increased risk of a short-term top yesterday unless “EUR can punch above 1.1710 soon”. Thanks to Fed, EUR surmounted this level easily and hit overnight high of 1.1739. The bullish phase that started late last week is still clearly intact and the next level to focus on is at 1.1800. Those who entered long at 1.1490 on 20 Jul should have exited half of their position at 1.1660 on 21 Jul. Stop-loss for the remaining long is raised to 1.1630 from yesterday’s level of 1.1590. Overall, the current bullish phase is deemed as intact until the stop-loss level is triggered”.