EUR/USD: Scope for further upside near term – UOB

UOB Group’s Markets Strategist Quek Ser Leang and Economist Lee Sue Ann suggest EUR/USD could still advance to the 1.0945 level in the next few weeks.

Key Quotes

24-hour view: Our expectation for “further advance in EUR” did not materialise as it traded between 1.0830 and 1.0887. The price action is likely part of a consolidation phase. In other words, EUR is likely to trade in a range today, probably between 1.0815 and 1.0880. 

Next 1-3 weeks: After EUR surged on Tuesday, we highlighted yesterday (15 Nov, spot at 1.0880) that “further EUR strength appears likely.” We also highlighted that “the level to monitor is 1.0945.” There is no change in our view. Overall, only a breach of 1.0770 (no change in ‘strong support’ level) would indicate that EUR is not strengthening further.