EUR/USD now looks at another test of 1.0480 – UOB

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group suggest the next target of note for EUR/USD emerges at the 1.0480 level in the near term.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the rebound in EUR has scope to extend but the major resistance at 1.0375 is unlikely to come into view’. The anticipated advance exceeded our expectations as EUR soared to a high of 1.0404. Strong upward momentum suggests further EUR strength even though last week’s high of 1.0480 is likely out of reach today (there is another resistance level at 1.0440). Support is at 1.0360, a breach of 1.0335 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Yesterday (23 Nov, spot at 1.0305), we held the view that EUR is likely to trade within a range of 1.0180/1.0375. We did not expect the rapid manner in which EUR soared above 1.0375 (high has been 1.0404). The rapid build-up in momentum is likely to lead to further EUR gains. The level to monitor is last week’s high of 1.0480. The upside risk is intact as long as EUR does not move below the ‘strong support’ level, currently at 1.0300. On a shorter-term note, 1.0335 is already a strong support level. Looking ahead, the next resistance above 1.0480 is at 1.0560.”