According to Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group, further upside in EUR/USD should meet the next support at 1.1120 in the near term.

24-hour view: “While we expected EUR to strengthen yesterday, we were of the view that ‘a sustained break above 1.0335 is unlikely today’. The pace of the advance in EUR exceeded our expectations as it rose to 1.0975 before closing at a 1-year high of 1.1044 ( 0.50%). There is scope for EUR to advance further even though the next significant resistance at 1.1120 is likely out of reach for today (there is a minor resistance at 1.1080). On the downside, a breach of 1.0995 (minor support is at 1.1020) would indicate that the advance in EUR is ready to take a breather.”

Next 1-3 weeks: “Yesterday (13 Apr, spot at 1.0990), we highlighted that the vastly improved momentum is likely to lead to further gains in EUR. We added, ‘it remains to be seen if EUR can maintain a foothold above this level’. EUR took out 1.1035 easily and soared to 1.1067 before closing at 1.1044 ( 0.50%). The price actions suggest EUR is likely to continue to head higher. The next level to aim for is 1.1120, followed by 1.1160. Overall, only a breach 1.0940 (‘strong support’ level was at 1.0900 yesterday) would indicate that EUR is not strengthening further.”