EUR/USD: Upward momentum gathers pace – UOB

UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia note the upside bias in EUR/USD seems to be picking up pace.

Key Quotes

24-hour view: We highlighted last Friday that “further EUR strength is not ruled out”. We added, “support is at 1.0760, a break of 1.0740 would suggest the current upward pressure has faded”. EUR rose to 1.0785 and then dropped to a low of 1.0741. The price actions are likely part of a consolidation and EUR is likely to trade between 1.0730 and 1.0775 today.

Next 1-3 weeks: Last Friday (09 Jun, spot at 1.0780), we noted that “upward momentum is building tentatively and it is not clear for now if EUR has enough momentum to rise to 1.0850”. EUR fell to a low of 1,0741 in NY trade. We continue to hold the same view but a clear breach of 1.0730 (no change in ‘strong support’ level) would indicate that EUR is not ready to move to 1.0850.