FX Strategists at UOB Group still remain of the view that EUR/USD could extend the upside momentum in the next weeks.

Key Quotes

24-hour view: “We expected EUR to ‘trade sideways between 1.1575 and 1.1620’ yesterday. EUR subsequently traded within a range of 1.1570/1.1622 before closing little changed at 1.1609. Upward momentum has improved a tad and the bias for today is on the upside. That said, a break of the major resistance at 1.1640 appears unlikely. Support is at 1.1595 followed by 1.1580.”

Next 1-3 weeks: “Our latest narrative from last Thursday (14 Oct, spot at 1.1595) still stands. As highlighted, EUR is likely trade with an upward bias towards 1.1640. Further advance is not ruled out but 1.1640 may not be easy to crack. The upward bias is deemed intact as long as EUR does not move below 1.1540 (no change in ‘strong support’ level). Looking ahead, the next resistance above 1.1640 is at 1.1680.”