EUR/USD: Rising bets for further upside – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang suggest EUR/USD could advance further in the near term.

Key Quotes

24-hour view: “We expected EUR to ‘range-trade between 1.0265 and 1.0365’ yesterday. Our view was not wrong as EUR traded between 1.0270 and 1.0358. The price actions suggest EUR could continue to range-trade, likely between 1.0275 and 1.0375.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (14 Nov, spot at 1.0325). As highlighted, after the strong surge last week, upward momentum is strong and EUR is likely to advance further. That said, overbought short-term conditions could lead to 1-2 days of consolidation first. The next level to watch is at 1.0400. Overall, only a break of 1.0200 (no change in ‘strong support’ level from yesterday) would indicate that the solid upward momentum has subsided.”