FX Strategists at UOB Group expect further gains in EUR/USD once 1.1485 is cleared in the next weeks.

Key Quotes

24-hour view: “We expected EUR to ‘consolidate and trade within a range of 1.1410/1.1475’ yesterday. Our view for consolidation was not wrong even though EUR traded within a narrower range than expected (1.1413/1.1467). Flattish momentum suggests EUR could continue to consolidate. Expected range for today, 1.1405/1.1465.”

Next 1-3 weeks: “Our view from yesterday (07 Feb, spot at 1.1450) still stands. As highlighted, overbought shorter-term conditions could lead to a couple of days of consolidation first but as long as 1.1360 (no change in ‘strong support’ level from yesterday) is not breached, the recent rally could extend further. However, EUR has to break the major resistance at 1.1485 before a move to 1.1520 can be expected.”