EUR/USD to test 1.15 on a clear breach of 1.1420 – OCBC

EUR/USD has backed off from one-month high at 1.1422 reached during the early Wednesday. If the pair is able to break clearly the mentioned level, EUR/USD could test the 1.15 mark next week, per OCBC Bank.

Key quotes

“The spike in the EUR/USD towards 1.1420 keeps the upside momentum in the pair, with the long bets extending in expectation of the passing of the virus recovery plan at the EU Summit starting Friday. Note however, that short-term implied valuations have turned sideways, and the gap with spot has widened quickly. This has left us slightly sceptical on the upside extension.” 

“A clean break of 1.1400/20 zone should see the EUR/USD pair try for 1.1500 next week.” 

“Firmer downside support at the 200-week MA at 1.1336.”