EUR/USD faces strong hurdle 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 face a tough barrier around 1.1120.

Key Quotes

24-hour view: “Yesterday, EUR traded choppily between 1.0984 and 1.1091 and then closed at 1.1011 (-0.43%). There is no clear directional bias for now and the price movements are likely part of a broad range. Today, we expect EUR to trade between 1.0980 and 1.1080.”

Next 1-3 weeks: “Our most recent narrative was from Tuesday (02 May, spot at 1.0975) wherein EUR is likely to trade in a range of 1.0920/1.1040. While EUR rose above 1.1040, there was no significant improvement in upward momentum. However, the bias 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. It is worth noting that there is another rather strong resistance level near 1.1095. If EUR were to break below 1.0920 (‘strong support’ level), it would suggest that it is not ready to move towards 1.1120.”