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FX Strategists at UOB Group noted EUR/USD could extend the move up to the 1.1285 level in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the tenacious rally could extend to 1.1235 first before a pull-back can be expected’. The subsequent advance in EUR exceeded our expectation as it rose to an overnight high of 1.1256 before settling on a firm note at 1.1232 (+0.56%). Conditions remain severely overbought but there is no clear sign that the rally in EUR is ready to take a breather. From here, only a breach of 1.1180 (minor support is at 1.1200) would indicate that the current upward pressure has eased. Meanwhile, EUR could grind higher even though the major resistance at 1.1285 is likely out of reach.”

Next 1-3 weeks: “EUR continues with its relentless rally as it registered seven consecutive days of higher high, higher low and higher close. While there is no indication just yet that the current rally is about to end soon, such massive and rapid rally without a ‘pause’ is not common and it is left to be seen if EUR could continue to maintain the current pace of its advance. Overall, only a break of 1.1140 (‘strong support’ level was at 1.1095 yesterday) would indicate that the current positive phase in EUR has run its course. Until then, further EUR strength towards 1.1285 is not ruled out but the prospect for extension to the next resistance at 1.1330 this time round is not high for now.”