FX Strategists at UOB Group Quek Ser Leang and Peter Chia noted further upside in EUR/USD should meet strong support around 1.0645 in the next weeks.

Key Quotes

24-hour view: “EUR rose to 1.0593 last Friday before easing off to close at 1.0560 (-0.25%). The underlying tone appears to have improved and the bias for today is for EUR to test last week’s high near 1.0605. For today, we do not expect a sustained rise above this level. Next resistance is at 1.0645. On the downside, a breach of 1.0530 (minor support is at 1.0550) would indicate that the current mild upward pressure has eased.”

Next 1-3 weeks: “EUR rose to a high of 1.0607 last Thursday (19 May). The advance appears to be part of corrective rebound that has room to extend further. However, any advance is expected to face solid resistance at 1.0645. The rebound phase is deemed intact as long as EUR does not move below 1.0500 (‘strong support’ level).”