EUR/USD looks to break 1.1845 – UOB

FX Strategists at UOB Group noted the relevance of the 1.1845 level in the near term horizon.

Key Quotes

“Instead of breaking above the Monday’s high of 1.1845, EUR traded mostly sideways yesterday before ending the day on a soft note. Indicators have turned neutral and further consolidation is expected for today. That said, the immediate bias is for a probe lower towards the bottom of the expected 1.1770/1.1835 consolidation range”.

“EUR traded in a relatively narrow range of 1.1784/1.1845 yesterday. The bullish phase that started 2 weeks ago is still intact but upward momentum is beginning to show signs of slowing. However, further extension to 1.1875 is not ruled out just yet even though the odds for such a move would diminish quickly unless EUR can punch above 1.1845 within these 1 to 2 days. On the downside, stop-loss for the bullish view remains unchanged at 1.1720 even though a dip below 1.1770 would be a strong indication that a short-term top is imminent”.