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According to FX Strategists at UOB Group, the pair’s stance looks constructive in the short-term horizon.

Key Quotes

24-hour view: “While we expected a higher EUR last Friday, the rapid surge that took out the 1.1750 resistance was not exactly anticipated (high of 1.1767). While upward momentum has improved considerably, EUR does not appear to be ready to tackle the major 1.1790 resistance just yet (minor resistance is at 1.1770). Support is at 1.1720 but the stronger level is closer to 1.1695″.

Next 1-3 weeks: “We highlighted last Friday (06 Jul, spot at 1.1690) that the “undertone for EUR has improved further” and there is “scope for a move to 1.1750 within the next few days”. EUR subsequently took out 1.1750 with ease and the strong and rapid up-move suggests that further EUR strength is likely in the coming days. While we are not ready to adopt a bullish stance just yet, a clear break of 1.1790 could lead to a rapid rise to last month’s top near 1.1850. The 1.1850 level is acting as a major resistance and is unlikely to yield so easily. All in, we expect EUR to stay supported from here unless there is break below the ‘key support’ at 1.1665″.