According to the forex strategists at UOB Group, the EUR/USD could still reach 1.1800 in the next few weeks.
24 hour view: “Yesterday we confirmed that bullish momentum has improved a bit and while the bias remains bullish, it looks unlikely to break the key resistance at 1.1800.” Our view was not wrong as the Euro rose to 1.1779 before weakening again. The bullish momentum is fading and the risk of the EUR rising to 1.1800 is negligible. The current move is seen as part of a consolidation period and the Euro should move sideways, likely in the 1.1735/1.1775 range.”
Next 1-3 weeks: “Our report from Tuesday (August 24, spot at 1.1745) is still valid. As we have indicated, the recovery of the euro may extend to 1.1800.” We added, “At this point in time, the chances of a sustained rally above 1.1800 are not high.” The Euro rose as high as 1.1779 yesterday (August 26th) before weakening again. The short-term bullish momentum is starting to fade, but a mere break of 1.1705 (there is no change in the “strong support” level) would indicate that 1.1800 is unreachable.”
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