UOB Research discusses EUR/USD technical outlook and flags a scope for further near-term gains on a daily close above 1.1025.
"EUR is still expected to trade sideways but top of range appears to be more vulnerable. The consolidation phase that started last Thursday (03 Oct, spot at 1.0960) is still in the early stages and we continue to expect EUR to trade sideways for a while more. However, as highlighted last Friday (04 Oct, spot at 1.0970), looking forward, the top of the expected 1.0890/1.1025 range appears to be more ‘vulnerable’," UOB notes.
"To put it another way, if EUR were to register a NY closing above 1.1025, it would suggest last Monday’s (30 Sep) low of 1.0877 could be a more significant bottom than currently expected," UOB adds.