EUR/USD: a breakout of 1.10 loses traction – UOB

In opinion of FX Strategists at UOB Group, the likeliness of a break above the key 1.1000 handle appears to have lost momentum so far.

Key Quotes

“EUR traded in a 1.0886/1.0933 range yesterday, close to our expected consolidation range of 1.0880/1.0935. The daily closing is on the strong side and from here; a move above last week’s peak near 1.0950 seems likely. However, based on the current lackluster momentum, any up-move is unlikely to extend significantly higher (next resistance near 1.0980 followed by the major level near 1.1000)”.

“EUR traded in a narrow range of less than 50 pips yesterday (between 1.0886 and 1.0933). While we continue to hold a bullish view, we are aware of the rapidly waning upward momentum. As indicated yesterday, EUR has to break above 1.1000 sometimes this week or the risk of a short-term top would increase further. Stop-loss is adjusted slightly higher to 1.0850 from 1.0830”.