EUR/USD: A sustained advance needs to clear 1.0900 – UOB

According to UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang, sustained gains are likely once EUR/USD clears the 1.0900 hurdle.

Key Quotes

24-hour view: “We stated yesterday that EUR could rise above 1.0870 but the chances of it staying above this level today are not high. Our expectation did not quite materialize as it edged to a high of 1.0871 before easing off to end the day unchanged at 1.0843. The consolidative price action suggests EUR is likely to trade sideways. Expected range for today, 1.0810/1.0870.”

Next 1-3 weeks: “Our most recent narrative from Monday (27 Mar, spot at 1.0775) is still valid. As highlighted, EUR appears to have entered a consolidation phase and it is likely to trade between 1.0660 and 1.0870 for the time being. Note that EUR edged to a high of 1.0871 yesterday before easing. While short-term upward momentum has improved a tad, EUR has to break and stay above 1.0900 before a sustained advance is likely. The prospect of EUR breaking clearly above 1.0900 is low for now, but it would remain intact as long as EUR stays above the ‘strong support’ level of 1.0770 in the next few days.”