EUR/USD still faces strong resistance at 1.1120 – UOB

According to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, further upside in EUR/USD should meet solid hurdle around 1.1120.

Key Quotes

24-hour view: “We highlighted last Friday that ‘there is no clear directional bias for now’ and expected EUR to ‘trade between 1.0980 and 1.1080’. In NY trade, EUR dropped briefly to 1.0965 and then rebounded to end the day little changed at 1.1017 (+0.05%). There is still no clear directional bias and today, we expect EUR to trade in a 1.0980/1.1060 range.”

Next 1-3 weeks: “Our update from last Friday (05 May, spot at 1.1025) still stands. As highlighted, the bias for EUR appears to be tilted to the upside but unless there is a clear improvement in momentum, any advance might find it difficult to break above the major resistance at 1.1120. Note that there is another rather strong resistance level near 1.1095. If EUR were to break below 1.0940 (‘strong support’ level was at 1.0920 last Friday), it would suggest that it is not ready to move towards 1.1120.”