EUR/USD: Door open to a probable move to 1.0750 – UOB

In the view of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, EUR/USD could be headed towards the 1.0750 region in the next few weeks.

Key Quotes

24-hour view: “Our view for EUR to trade sideways was incorrect as it rose to a high of 1.0694 before closing on a firm note at 1.0678 (+0.43%). The advance has gathered momentum and EUR is likely to rise above 1.0700. The next major resistance at 1.0750 is likely out of reach for today. Support is at 1.0660, followed by 1.0635.”

Next 1-3 weeks: “Our latest narrative was from last Friday (03 Mar, spot at 1.0605) where we were of the view that EUR is likely to consolidate and trade between 1.0530 and 1.0700. Yesterday, EUR rose to a high of 1.0694. Upward momentum is building and EUR appears poised to break above 1.0700 and head towards 1.0750. At this stage, the odds of a sustained advance above 1.0750 are not high. On the downside, a breach of the ‘strong support’ level, currently at 1.0615, would indicate that the upside risk has faded.”