EUR/USD still faces resistance around 1.0400 – UOB

In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, EUR/USD is expected to meet a decent hurlde around the 1.0400 region in the next weeks.

Key Quotes

24-hour view: “We expected EUR to ‘trade sideways between 1.0260 and 1.0350’ yesterday. EUR subsequently dipped to 1.0274, rose to 1.0365 before easing off to close at 1.0317 (+0.19%). We continue to expect EUR to trade sideways, likely between 1.0280 and 1.0360.”

Next 1-3 weeks: “We continue to hold the same view as from yesterday (11 Aug, spot at 1.0300). As highlighted, further EUR strength appears likely even though overbought shorter-term conditions suggest a slower pace of advance. The next resistance level of note is at 1.0400. On the downside, a break of 1.0230 (no change in ‘strong support’ level from yesterday) would indicate that the current upward pressure has eased.”