EUR/USD: Further gains could retest 1.0785 near term – UOB

In the opinion of UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang, extra upside in EUR/USD is expected to clear the 1.0785 level in the next few weeks.

Key Quotes

24-hour view: “We expected EUR to ‘trade between 1.0700 and 1.0760’ yesterday. However, EUR edged to a high of 1.0776 before closing at 1.0755 (+0.20%). Upward momentum has improved a tad and EUR is likely to trade with an upward bias. That said, it remains to be seen if EUR can maintain a foothold above the major resistance at 1.0785 (there is another resistance at 1.0820). Support is at 1.0735, followed by 1.0700.”

Next 1-3 weeks: “Our update from Tuesday (10 Jan, spot at 1.0730) still stands. As highlighted, the ease with which EUR took out 1.0735 earlier this week suggests it is likely to take a crack at another strong resistance at 1.0785. The upside risk is intact as long as EUR stays above 1.0665 (‘strong support’ level was at 1.0650 yesterday). Looking ahead, a sustained breach of 1.0785 will shift the focus to 1.0900.”