EUR/USD still bullish, still targets 1.17 and above – UOB

The pair’s stance remains bullish with the next target beyond the 1.1700 handle in the short term, suggested FX Strategists at UOB Group.

Key Quotes

“Expectation for a push higher towards 1.1710 was wrong as EUR eased off quickly from a high of 1.1684 before trading mostly sideways. Upward pressure has clearly eased and further consolidation seems likely from here. Expected range for the day; 1.1610/1.1670”.

“EUR gave back most of last Friday’s gain and closed lower at 1.1638. The strong upward pressure that started post-ECB last Thursday has eased and the current price action is viewed as a short-term consolidation phase that could last for a few days. As long as the stop loss at 1.1550 is intact (level unchanged), another push higher is still expected after the current consolidation. The level to focus on is clearly at 1.1710, the high back in Aug 2015. A clear break of this level could lead to acceleration higher as there are hardly any significant resistances until 1.1800”.