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FX Strategists at UOB Group now see EUR/USD advancing to the 1.1190 region in the next weeks.

Key Quotes

24-hour view: “We noted yesterday that ‘conditions remain overbought’ and we held the view that while EUR ‘could edge above 1.1145; it is unlikely to maintain a toe-hold above this level’. EUR subsequently rose to 1.1153 before easing off. The recent strong rally in EUR appears to be ready to ‘take a break’. In other words, EUR is expected to trade sideways for today, likely between 1.1095 and 1.1160.”

Next 1-3 weeks: “We highlighted last Friday (29 May, spot at 1.1075) that the ‘outlook for EUR is still positive’ and that it ‘could continue to advance towards 1.1145’. EUR rose to 1.1153 yesterday (01 Jun) and there is no change to the positive outlook for EUR. That said, overbought shorter-term conditions could lead to the rally in EUR taking a pause for a couple of days first before moving higher towards 1.1190 (next resistance is at 1.1235). On the downside, the ‘strong support’ level has moved higher to 1.1045 from yesterday’s level of 1.1020.”