EUR/USD: Room for further upside – UOB

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group suggest there is still scope for EUR/USD to advance further in the near term.

Key Quotes

24-hour view: We indicated yesterday that “the current price movements appear to be part of a consolidation phase” and we expected EUR to trade in a range of 1.0910/1.0970. EUR then traded between 1.0905 and 1.0946. The price actions still appear to be consolidative, but the slightly weakened underlying tone suggests EUR is likely to trade in a lower range of 1.0890/1.0950. 

Next 1-3 weeks: We have held a positive EUR view for more than a week now. In our most recent narrative from last Friday (16 Jun, spot at 1.0940), we highlighted that EUR “is likely to rise further, albeit at a slower pace.” We added, “the next level to watch is 1.1000.” We continue to hold the same view even though overbought conditions could lead to 1-2 days of consolidation first. Overall, only a breach of 1.0845 (no change in ‘strong support’ level) would indicate 1.1000 is out of reach this time around.