EUR/USD bullish above 1.0840 – UOB

FX Strategists at UOB Group keep the neutral stance on the pair, although a shift to a bullish outlook should come on a close above 1.0840.

Key Quotes

“Instead of struggling to move above 1.0740 as expected, EUR sliced through this level and surged to a high 1.0811. The strong daily closing coupled with impulsive upward momentum suggests further upside pressure but at this stage, a move above the December’s peak of 1.0870/75 seems unlikely (minor resistance at 1.0840). Support is at 1.0770 followed by 1.0730. The 1.0680 low seen yesterday is not expected to come into the picture for now”.

“EUR edged above the top end of the expected 1.0600/1.0800 sideway consolidation range with a high of 1.0811 yesterday. The undertone has improved considerably and from here, a daily closing above 1.0840 would indicate that EUR has entered a bullish phase (with an immediate target of 1.0955). This appears to be a likely scenario unless there is a move back below 1.0730 within these 1 to 2 days”.