EUR/USD faces solid support at 1.0180 – UOB

FX Strategists at UOB Group Quek Ser Leang and Peter Chia noted further upside in EUR/USD should meet the next up barrier at 1.0180.

Key Quotes

24-hour view: “While we expected EUR to strengthen last Friday, we were of the view that ‘any advance is unlikely to break 1.0090’. However, EUR cracked 1.0090 and soared to 1.0112 before retreating to close at 1.0039 (+0.45%). Despite the sharp retreat, momentum still appears to be positive and we see room for EUR to retest the 1.0115 level. For today, a sustained rise above this level is unlikely (next resistance is at 1.0140). Support is at 1.0030 but only a breach of 1.0000 would indicate that EUR is unlikely to advance further.”

Next 1-3 weeks: “Last Thursday (08 Sep, spot at 0.9990), we indicated that the downside risk is EUR has dissipated and we expected EUR to consolidate and trade between 0.9900 and 1.0090. On Friday, EUR soared above 0.9990 and rose to 1.0112. Upward momentum is beginning to build and EUR is likely to trade with an upward bias in the coming days. However, any advance is expected to face solid resistance at 1.0180. The upside bias is intact as long as EUR does not move below the ‘strong support’ level, currently at 0.9960.”