Euro: Further upside toward 1.1725 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang highlights EUR/USD at 1.1685 holding recent gains, with intraday trading likely between 1.1655 and 1.1715. Over a 1–3 week horizon, he sees room for further upside toward 1.1725, while warning that a break below 1.1615 would signal that the upward pressure seen since early week has faded.

Uptrend intact with nearby supports

"24-HOUR VIEW: Following the sharp rally to 1.1679 two days ago, we highlighted yesterday, when EUR was at 1.1675, that “the rally in EUR has scope to extend.” However, we held the view that “any advance could stay within a 1.1635/1.1700 range.” EUR subsequently rose to 1.1710 before easing to close marginally higher by 0.01% at 1.1678. While upward momentum has slowed somewhat, it is too early to expect a significant pullback. Today, we expect EUR to range-trade, most likely between 1.1655 and 1.1715."

"1-3 WEEKS VIEW: Our update from yesterday (20 Aug, spot at 1.1675) still stands. As highlighted, “there is room for further upside in EUR toward 1.1725.” On the downside, if EUR breaks below 1.1615 (‘strong support’ level was at 1.1600 yesterday), it would indicate that the upward pressure that started early this week has faded. Looking ahead, the significant resistance above 1.1725 is 1.1790."