EUR/USD CONTINUES TO TARGET 1.1000 – UOB

Further upside prompts EUR/USD to refocus on the 1.1000 hurdle according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: We indicated last Friday that EUR “could rise above 1.0965 but is unlikely to threaten the next resistance at 1.1000.” EUR then rose briefly to 1.0970 before pulling back to close at 1.0933 (-0.11%). The current price movements appear to be part of a consolidation phase and EUR is likely to trade in a range of 1.0910/1.0970 today. 

Next 1-3 weeks: Last Friday (16 Jun, spot at 1.0940), we highlighted that EUR “is likely to rise further, albeit at a slower pace.” We added, “the next level to watch is 1.1000.” We continue to hold the same view even though overbought short-term conditions could lead to a couple of days of consolidation first. Overall, only a breach of 1.0845 (‘strong support’ level was at 1.0825 last Friday) would indicate the EUR strength that started more than a week ago has come to an end.