EUR/USD could now advance to 1.0800 – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang suggested EUR/USD could now head towards the 1.0800 region.

Key Quotes

24-hour view: “EUR edged to a fresh 1-month high of 1.0764 last Friday before easing off to close little changed at 1.0727 (+0.03%). Upward momentum has barely improved and EUR is unlikely to advance much further. For today, EUR is more likely to consolidate and trade between 1.0690 and 1.0765.”

Next 1-3 weeks: “We have held a positive EUR view since early last week. Our view was not wrong but as EUR struggled to extend its gains, we highlighted last Thursday (26 May, spot at 1.0690) that EUR has to move and stay above 1.0720 or the chance for a break of 1.0750 would diminish quickly. On Friday, EUR rose above 1.0750 but retreated quickly from a high of 1.0764. The risk is still on the upside but in view of the lackluster upward momentum, it is left to be seen if EUR could extend its advance to 1.0800. The upside risk is intact as long as EUR does not move below 1.0655 (‘strong support’ level previously at 1.0640).”