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FX Strategists at UOB Group noted that EUR/USD could advance further although a re-visit to1.1880 appears unlikely for the time being.

Key Quotes

24-hour view: “EUR surged to a high of 1.1768 earlier before dropping back down quickly (low so far 1.1602). Further expansion in the already rather wide range is not ruled out but we are seeing strong support at 1.1580 and resistance at 1.1780.”

Next 1-3 weeks: “The sudden surge in EUR that took out our ‘strong resistance’ at 1.1745 came as a surprise. The price actions indicate that the weak phase in EUR that started last week has found a bottom at 1.1621 (we were expecting further EUR weakness but were of the view that 1.1580 may not be easy to crack). Further EUR strength is not ruled out but at this stage, it is too early to expect a move towards last month’s top at 1.1880 (1.1855 is already quite a strong level). On the downside, support is still at 1.1580 followed by another solid level at 1.1550.”