EUR/USD now targets a breakout of 1.1000 – UOB

FX Strategists at UOB Group now expect EUR/USD to surpass the 1.1000 barrier in the next weeks.

Key Quotes

24-hour view: “The sharp and sudden surge in EUR during London hours was unexpected. The rapid rally took out several strong resistance levels with ease. While further gain is not ruled out, EUR is unlikely able to maintain the frenetic pace of advance. From here, a break of 1.0950 would not be surprising but for today, 1.0990 is likely out of reach. Support is at 1.0890 followed by 1.0860.”

Next 1-3 weeks: “We have maintained a mixed outlook in EUR since 06 May and expected EUR to trade in an erratic manner within a broad range. After ‘going nowhere’ for about 2 weeks, EUR was jolted awake yesterday as it surged past several strong resistance levels with ease and posted a huge gain of +0.90% (1.0912), the biggest 1-day advance in 6 weeks. Upward momentum has improved and from here, EUR is expected to trade with an upward bias toward the early-May high of 1.1017. At this stage, the odds for a clear break of this level are not high. On the downside, 1.0825 is acting as a ‘strong support’ level.”