UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang noted EUR/USD is now poised to extend the uptrend in the near term.

Key Quotes

24-hour view: “We expected EUR to trade in a range of 1.0870/1.0940 yesterday. However, EUR took off in early NY trade and surged to a 1-1/2-month high of 1.0000. Further EUR strength appears likely but overbought conditions suggest a sustained break above the major resistance at 1.0335 is unlikely today. Support is at 1.0960, a breach of 1.0930 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Yesterday (11 Apr, spot at 1.0905), we held the view that EUR is likely to trade in a range of 1.0820/1.0980. We did not anticipate the strong surge that sent EUR to a high of 1.0000. Vastly improved momentum is likely to lead to further gains. However, 1.1035 is a major resistance and it remains to be seen if EUR can maintain a foothold above this level. Looking ahead, the next significant resistance level is at 1.1120. All in all, we hold a positive EUR now as long as it stays above the ‘strong support’ level, currently at 1.0900.”