EUR/USD bullish, 1.1710 stays on the cards – UOB

FX Strategists at UOB Group remain constructive on the pair’s outlook, targeting the 1.1710 area in the next weeks.

Key Quotes

“Instead of trading sideways, EUR continues to edge higher to touch a fresh high of 1.1682. While indicators are severely over-stretched, another push higher is expected but the major 1.1710 resistance (high in Aug 2015) is unlikely to yield so easily. Support is at 1.1635 followed by 1.1615”.

“The partial profit taking level suggested last Friday at 1.1660 (see Chart of the Day update on 14 Jul) was exceeded as EUR hit a high of 1.1682. The next level to focus on is clearly at the Aug 2015 peak of 1.1710. Above this level, there are no significant resistances until the next ‘round number’ of 1.1800. All in, the bullish phase that started last Wednesday (see update on 19 Jul) is deemed as intact until the stop-loss at 1.1550 is taken out (level unchanged). On a shorter-term note, 1.1615 is already a very strong level”.