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FX Strategists at UOB Group noted the outlook on EUR/USD remains tilted to the positive side for the time being.

Key Quote

24-hour view: “The sudden strong surge in EUR that sent it soaring to an overnight high of 1.0995 came as a surprise. While upward momentum remains strong, overbought conditions suggest the rapid advance is likely to take a breather for now. In other words, EUR is expected to consolidate and trade between 1.0940 and 1.1000.”

Next 1-3 weeks: “EUR continues to trade in a choppy manner as it surged and recouped most of last week’s decline (1.0980, +0.54%). The advance is quickly approaching the top our expected 1.0800/1.1000 range (overnight high of 1.0995) and upward momentum has ticked up. While the bias is tilted to the upside, EUR has to close above 1.1020 before a more sustained advance can be expected. In the meanwhile, the outlook for EUR is deemed as mildly positive as long as it does move below 1.0900 within these few days.”