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FX Strategists at UOB Group noted EUR/USD still sees a move to the 1.1000 level and above in the next weeks.

Key Quotes

24-hour view: “Our view for EUR to ‘trade sideways’ was wrong as it soared to a high of 1.0999 before easing off. While upward momentum is still strong, the rapid rise is deep in overbought territory. From here, further EUR strength is not ruled out but any advance is likely limited to a probe of the early-May high of 1.1017 (next resistance is at 1.1055). On the downside, a break of 1.0935 would indicate the current upward pressure has eased.”

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).”