EUR/USD: Next on the upside comes 1.0400 – UOB

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group see the next up barrier of note for EUR/USD at 1.0400 in the next few weeks.

Key Quotes

24-hour view: “EUR surged to a high of 1.0364 in late NY trade last Friday before closing at 1.0352 (+1.41%). The sharp and swift rally appears to be overdone and EUR is unlikely to advance much further. For today, EUR is more likely to range-trade between 1.0265 and 1.0365.”

Next 1-3 weeks: “EUR lifted off last week and gained a whopping 3.94%, its largest 1-week advance since Mar 2020. Upward momentum is strong and EUR is likely to advance further. That said, overbought short-term conditions could lead to 1 to 2 days of consolidation first. The next level to watch is at 1.0400. Only a break of 1.0200 (‘strong support’ level) would indicate that the solid upward momentum has subsided.”