EUR/USD: Extra gains need to clear 1.1485 – UOB

FX Strategists at UOB Group noted EUR/USD could extend to 1.1520 once 1.1485 is cleared.

Key Quotes

24-hour view: “Last Friday, EUR tested the 1.1485 resistance (high of 1.1483) before easing off to close little changed (1.1446, +0.07%). The 1.1485 level is still a solid resistance and with upward momentum beginning to wane, a break of this level appears unlikely. For today, EUR is more likely to consolidate and trade within a range of 1.1410/1.1475.”

Next 1-3 weeks: “While the strong surge in EUR over the past one week or so appears to be running ahead of itself, the rally is not showing any sign of easing just yet. Overbought shorter-term conditions could lead to a couple of days of consolidation first but as long as 1.1360 (‘strong support’ level) is not breached, the rally could extend further. That said, EUR has to break the major resistance at 1.1485 before a move to 1.1520 can be expected.”