FX Strategists at UOB Group noted the bullish view on EUR/USD remains well and sound for the time being.
24-hour view: “While the rally in EUR is severely overbought, it is too early to expect a sustained pull-back. That said, there is room for EUR to ease off slightly but any weakness is viewed as part of a 1.1330/1.1470 range (a sustained decline below 1.1330) is not expected.”
Next 1-3 weeks: “EUR registered a huge 210 pips range yesterday (largest 1-day range since Jun 2018) as it rocketed to a high of 1.1492 before ending the day higher by a whopping +1.44% (1.1447), the largest 1-day advance Jun 2016. While severely overbought, there is still no indication that EUR is ready to top out just yet. That said, 1.1500 is relatively solid resistance and EUR has to register a NY closing above this level in order to indicate it has enough momentum to extend its rally to 1.1580, possibly 1.1640. Meanwhile, EUR could consolidate for a couple of days and only a break of 1.1230 (no change in ‘strong support’ level) would indicate that the current rally has run its course.”