According to FX Strategists at UOB Group, EUR/USD is expected to navigate between 1.1840 and 1.1890 in the very near-term.
24-hour view: “We expected EUR to strengthen last Friday but we were of the view that ‘a break of the major resistance at 1.1920 is unlikely’. EUR subsequently rose to a high of 1.1890 before easing off and traded sideways for the rest of the sessions. The movement is viewed as part of a consolidation phase and EUR could trade sideways, expected to be within a 1.1840/1.1890 range. Looking forward, 1.1890 is acting as a solid resistance and break of this level could potentially lead to a rapid rise towards the major resistance at 1.1920.”
Next 1-3 weeks: “There is not much to add to our latest update from Tuesday (17 Nov, spot at 1.1860). As highlighted, upward momentum has improved slightly but EUR has to close above 1.1920 in order to indicate that it has moved out of its consolidation phase. Since then EUR has not been able to make much headway on the upside but as long as 1.1790 is intact (no change in ‘strong support’ level), there is still chance for EUR to make a push above 1.1920.”
Credit: FX Street