In opinion of FX Strategists at UOB Group, EUR/USD could now be headed towards the 1.1410 area in the near term.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the bias for EUR is on the upside but a clear break of 1.1325 is unlikely’. However, EUR soared to 1.1382, plunged quickly to 1.1234 before rebounding back up again. The volatile price actions have resulted in a mixed outlook. For today, further choppy price actions would not be surprising, likely between 1.1260 and 1.1380.”

Next 1-3 weeks: “Two days ago (29 Nov, spot at 1.1290), we highlighted that EUR has moved into a consolidation phase and we expected EUR to trade between 1.1220 and 1.1360. We did not anticipate the increase in volatility as EUR traded in a choppy manner yesterday (30 Nov) and within a broad range of 1.1234/1.1382 before closing on a firm note at 1.1336 (+0.40%). Upward momentum has improved and we see room for EUR to trade with an upward bias towards 1.1410. At this stage, a sustained rise above this level is unlikely. On the downside, a breach of the ‘strong support’ (currently at 1.1220) would indicate that EUR is not ready to head towards 1.1410.”