EUR/USD: Dwindling bets for a sustained move above 1.1120 – UOB

A move beyond 1.1120 in EUR/USD appears not favoured for the time being according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We did not anticipate EUR to strengthen yesterday as it popped to a fresh 2-year high of 1.1095 before easing off to close at 1.1040 (+0.62%). The rapid rise appears to be overdone and EUR is unlikely to advance much further. Today, EUR is more likely to trade in a range, likely between 1.1000 and 1.1100.”

Next 1-3 weeks: “Yesterday (26 Apr, spot at 1.0975), we highlighted that ‘instead of advancing, EUR is more likely to trade in a range for now, expected to be between 1.0900 and 1.1050’. However, EUR lifted off and soared above 1.1050 (high of 1.1095) before closing on a firm note at 1.1040 (+0.62%). Despite the relatively strong advance, upward momentum has not improved much. That said, EUR could ratchet higher upwards 1.1120. At this stage, the odds for a sustained rise above this level are not high. In order to keep the momentum going, EUR should not break below 1.0950 (‘strong support’ level).”