EUR/USD could climb to 1.1380 – UOB

The pair’s upside could extend further and visit the 1.1380 region, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “The strong and swift advance in EUR that touched 1.1347 last Friday appears to be running ahead of itself. For today, the risk of EUR moving above the 1.1347 is not high. That said, EUR does not appear to be ready to stage a significant pull-back just yet. All in, EUR is more likely to trade sideways to slightly lower. Expected range for today, 1.1280/1.1340”.

Next 1-3 weeks: “In our last update on 04 Jun (spot at 1.1245), we held the view that EUR has “moved into a ‘positive phase’” and “could move to 1.1300”. We added, the prospect for EUR strength to extend to 1.1380 is not high. EUR closed below 1.1300 on Wednesday and Thursday before surging higher on Friday (07 Jun) and hit 1.1347 (on a weekly basis, EUR gained +1.47%, the largest 1-week advance since Aug 2018). While the price action continues to suggest further EUR strength, upward momentum has not improved by as much as preferred. That said, a test of 1.1380 would not be surprising but whether EUR can maintain toehold above this level is left to be seen. All in, the ‘positive phase’ could last for a while more and only a break of 1.1230 (‘key support’ previously at 1.1155) would indicate that a short-term top is in place”.