EUR/USD: Strong resistance aligns at 1.2185- UOB

EUR/USD keeps the positive bias unchanged, although it still faces strong resistance at 1.2185, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we highlighted that EUR ‘could continue to advance even though overbought conditions suggest that the next major resistance at 1.2185 is likely out of reach’. We added, ‘there is a relatively strong resistance at 1.2145’. EUR subsequently advanced to 1.2149 before easing off to trade mostly sideways (low has been 1.2101). While upward momentum has waned, it appears too early to expect a sustained pullback. For today, EUR could edge higher but the major resistance at 1.2185 is still likely out of reach (there is a minor resistance at 1.2160). Support is at 1.2100 followed by 1.2080.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (29 Apr, spot at 1.2135). As highlighted, the positive phase in EUR that started early this month is still intact. However, in view of the overbought conditions, EUR may find it hard to break the major resistance at 1.2185. On the downside, a breach of 1.2050 (no change in ‘strong support’ level) would indicate that the positive phase has come to an end.”