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FX Strategists at UOB Group see the upside momentum in EUR/USD unchanged for the time being with the next target at 1.1017.

Key Quotes

24-hour view: “While we expected ‘further EUR strength’ yesterday, we held the view that ‘any advance is likely limited to a probe of 1.1017’. Our view was not exactly right as EUR sell-off quickly after touching a high of 1.1008. Upward momentum has dissipated with the sharp decline. From here, EUR could edge lower but for now, any weakness is viewed as part of a 1.0915/1.0985 range. In other words, a sustained move below 1.0915 Is not expected.”

Next 1-3 weeks: “There is not much to add to our update from Tuesday (19 May, spot at 1.0920). As highlighted, EUR is expected to trade with an upward bias towards 1.1017. The odds for a break of this level have improved but are still not high. Looking ahead, EUR has to close above 1.1030 before further sustained up-move can be expected. Meanwhile, the overall positive outlook remains intact as long as EUR does not move below 1.0890 (‘strong support’ level was previously at 1.0825).”