Euro: Further gains eyed toward 1.1800 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a constructive stance on EUR/USD despite recent consolidation around 1.1660. They still see room for upside toward 1.1725 in the coming weeks as long as support at 1.1630 holds. On a 1–3 month horizon, they highlight a decisive technical break and positive weekly MACD, pointing to targets at 1.1800 and 1.1850.

Constructive bias with higher targets

"24-HOUR VIEW: EUR rose to 1.1711 last Friday and then eased to close largely unchanged at 1.1679 (+0.01%). When EUR was at 1.1675 in the early Asian session yesterday, we indicated that EUR “could ease further, but any decline should stay within a range of 1.1645/1.1700.” EUR subsequently traded between 1.1655 and 1.1687. EUR closed modestly lower by 0.15% at 1.1662. The price action provides no fresh clues, and further range-trading appears likely, expected to be between 1.1650 and 1.1685."

"1-3 WEEKS VIEW: Tracking our positive EUR view from early last week, 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, but it has since eased. That said, we will continue to hold the same view as long as EUR holds above 1.1630 (‘strong support’ level previously at 1.1615)."