FX Strategists at UOB Group noted the upside momentum in EUR/USD is expected to meet solid resistance in the vicinity of 1.1900.
24-hour view: “We highlighted yesterday that ‘there is room for the advance in EUR to extend but it is unlikely to challenge the major resistance at 1.1860’. EUR subsequently dropped briefly to 1.1771 during NY session before snapping back to a high of 1.1849. Upward momentum has improved a tad and a breach of 1.1860 would not be surprising. That said, the next major resistance at 1.1895 is not expected to come under threat. Support is at 1.1820 followed by 1.1800.”
Next 1-3 weeks: “Two days ago (27 Jul, spot at 1.1800), we noted that downward pressure has dissipated and we expected EUR to trade within a 1.1750/1.1860 range for a period of time. Since then, upward momentum has improved slightly and EUR could move above 1.1860 but at this stage, any advance is expected to face solid resistance at 1.1895. On the downside, a break of 1.1770 (‘strong support’ level) would indicate that the current mild upward pressure has eased.”