EUR/USD Breaks Out, UOB Sees Room for Gains Toward 1.1725

EUR/USD has broken out of its recent tight range, closing slightly higher near 1.1675 as tentative upside momentum emerges. According to UOB's Quek Ser Leang and Lee Sue Ann, this breakout indicates a constructive short-term and medium-term view for the Euro.

The analysts maintain that there is room for gains toward 1.1725, provided the Euro holds above clearly defined support levels. They also identify longer-term technical targets at 1.1800 and 1.1850.

In their analysis, UOB notes that EUR traded between 1.1655 and 1.1687 two days ago, but yesterday's price action showed upward momentum starting to build, albeit tentatively. Today, there is a chance for EUR to test 1.1695, with the next resistance at 1.1710 unlikely to come under threat.