In opinion of FX Strategists at UOB Group, EUR/USD still faces a tough resistance at the 1.2185 level in the near-term.
24-hour view: “Yesterday, we held the view that EUR ‘could drift lower to 1.2050’. EUR subsequently dipped to 1.2054 before lifting off during NY session and surged to 1.2134. In view of the strong momentum, EUR could continue to advance even though overbought conditions suggest that the next major resistance at 1.2185 is likely out of reach (there is a relatively strong resistance at 1.2145). Support is at 1.2110 followed by 1.2085.”
Next 1-3 weeks: “We have held a positive view in EUR since the start of the month. In our latest narrative from Tuesday (27 Apr, spot at 1.2080), we highlighted that ‘as long as EUR does not break 1.2020, the positive phase is deemed intact’. We added, ‘the next resistance levels above 1.2115 are at 1.2145 and 1.2185’. EUR surged past 1.2115 during NY session and from here, a break of 1.2145 would not be surprising. However, in view of the overbought conditions, EUR may find it hard to break 1.2185. On the downside, a breach of 1.2050 (‘strong support’ level previously at 1.2020) would indicate that the positive phase has come to an end.’
