Euro: Upside room toward 1.1800 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a constructive view on EUR/USD after the pair held near 1.1680 and tested 1.1710 twice. Intraday, they look for modest easing within 1.1645–1.1700, but over the next few weeks they still see scope toward 1.1725, with a broader technical roadmap pointing to 1.1800 and then 1.1850 while 1.1615 holds.

Constructive bias with higher targets

"24-HOUR VIEW: Last Thursday, EUR rose to 1.1710 before easing to close marginally higher by 0.01% at 1.1678. When it was at 1.1685 on Friday, we indicated that “while upward momentum has slowed somewhat, it is too early to expect a significant pullback.” We expected EUR “to range-trade between 1.1655 and 1.1715.” EUR subsequently edged to a high of 1.1711 and then eased to close largely unchanged again at 1.1679 (+0.01%). Today, EUR could ease further, but any decline should stay within a range of 1.1645/1.1700."

"1-3 WEEKS VIEW: Tracking our positive EUR view from early last week (see annotations in the chart below), we highlighted on Thursday (20 Aug, spot at 1.1675) that “there is room for further upside in EUR toward 1.1725.” EUR subsequently tested the 1.1710 level twice. Although there has been no further increase in upward momentum, we remain positive on EUR for now. Overall, only a breach of 1.1615 (no change in ‘strong support’ level) would indicate that the upside risk for EUR has faded."