There are indications of an overvaluation of the euro, although the uptrend is not in danger until resistance at 1.1290, informs Terence Wu, an FX strategist at OCBC bank. MUFG Bank expects EUR / USD to trade at 1.13 in the fourth quarter.
Key quotes or OCBC
“The implicit short-term valuations have become higher, but there is still a large gap between that and the EUR / USD spot. This keeps us careful to chase the pair excessively higher. However, the bullish momentum remains unchanged. ”
“For now, 1.1200 and 1.1240 could still attract, before firmer resistance around 1.1290.”