In opinion of FX Strategists at UOB Group, EUR/USD could attempt a move to 1.10 in the very near term.
24-hour view: “We highlighted last Friday EUR “could retest the 1.1000 level” and added, “the next resistance at 1.1025 is unlikely to come into the picture”. EUR rose briefly during NY hours and touched 1.0997 before easing off quickly and subsequently traded mostly sideways. From here, the underlying tone still appears to be on the firm side but while EUR could edge above 1.1000, the next resistance at 1.1025 is still unlikely to be challenged. Support is at 1.0955 but only a move below 1.0935 would suggest the current mild upward pressure has eased”.
Next 1-3 weeks: “The consolidation phase that started last Thursday (03 Oct, spot at 1.0960) is still in the early stages and we continue to expect EUR to trade sideways for a while more. However, as highlighted last Friday (04 Oct, spot at 1.0970), looking forward, the top of the expected 1.0890/1.1025 range appears to be more ‘vulnerable’. To put it another way, if EUR were to register a NY closing above 1.1025, it would suggest last Monday’s (30 Sep) low of 1.0877 could be a more significant bottom than currently expected”.