EUR/USD now looks to 1.1030 – UOB

FX Strategists at UOB Group noted a close above 1.1030 could allow EUR/USD to attempt a visit to the mid-1.1100s in the next weeks.

Key Quotes

24-hour view: “Our view for EUR to weaken yesterday was incorrect as it rose quickly to an overnight high of 1.0987. Upward momentum has improved, albeit not by much. From here, a breach of 1.1000 would not be surprising but in view of the patchy momentum, the next resistance at 1.1030 could be out of reach. All in, EUR is expected to trade on a firm footing for now as long as it does not move below 1.0930 (minor support is at 1.0950).”

Next 1-3 weeks: “We have held the same since last Wednesday (08 Apr, spot at 1.0890) wherein EUR ‘has moved into a consolidation phase’ and ‘is expected to trade between 1.0750 and 1.1000 for a period’. After about a week, EUR is currently approaching the top our expected range at 1.1000. Upward momentum is showing sign of picking up but at this stage, it is premature to expect the start of a sustained advance. Only a NY closing above 1.1030 would increase the odds for EUR to move towards the late-March peak of 1.1146. The probability for such a scenario is not high for now but it would continue to increase as long as 1.0900 is intact.”