EUR/USD outlook shifted to bullish, targets 1.1560 – UOB

FX Strategists at UOB Group have shifted the pair’s outlook to bullish from neutral, now allowing a potential test of 1.1560 ahead of 1.1615 in the short term.

Key Quotes

“We have held the same view that EUR would enter a bullish phase again if there is a NY closing above the weekly trend-line resistance at 1.1445 since last week”.

“This condition was finally met and from here, the immediate target is at 1.1560 followed by 1.1615 (the high in May 2016). In order to maintain the current impulsive momentum, this pair has to continue to accelerate higher quickly as any prolonged consolidation or a deep pullback would increase the odds of a possible ‘false break’.

“Those looking to enter long can use the current spot level of 1.1370 as an entry level with a stop-loss at 1.1410”.