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FX Strategists at UOB Group suggested EUR/USD could extend the upside to the 1.1500 area if manages to clear 1.1400 on a NY closing basis.

Key Quotes

24-hour view: “EUR retreated after briefly spiking a high of 1.1492. The rapid rise appears to be running ahead of itself. From here, EUR could continue to trade in a volatile manner and within a broad 1.1300/1.1500 range.”

Next 1-3 weeks: “We highlighted last Friday (06 Mar, spot at 1.1225) that ‘upward momentum is given a strong boost’. We added, ‘the next level to focus on is at 1.1330 followed by 1.1370’. EUR subsequently surged to a high of 1.1354 during NY session last Friday before extending its gains this morning. Clearly, momentum has improved by leaps and bounds but from here, there is a strong mid-term hurdle at 1.1400. If EUR were to register a NY closing above 1.1400, it could lead to further rapid rise as there is hardly any resistance level of note until 1.1500 (next resistance is at 1.1640). All in, there is no indication that the current rally is ready to take a breather soon. Only an unlikely breach of 1.1230 (‘strong support’ has shifted markedly higher from Friday’s level of 1.1100) would indicate the current advance has run its course.”