FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang suggested that EUR/USD could revisit 1.0800 once 1.0750 is cleared in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘there is scope for the rapid rise in EUR to extend’. We added, ‘the major resistance at 1.0750 is unlikely to come under threat for now’. Our view was not wrong as EUR rose to a high of 1.0748. Faltering upward momentum coupled with overbought conditions suggests that EUR is unlikely to strengthen much further. For today, EUR is more likely to consolidate and trade between 1.0670 and 1.0750.”

Next 1-3 weeks: “Yesterday (24 May, spot at 1.0685), we highlighted that the strong boost in momentum suggests EUR could continue to advance. We indicated that the next resistance level of note is at 1.0750. Our view was not wrong as EUR rose to within a couple of pips of 1.0750 (high has been 1.0748). From here, a break of 1.0750 would not be surprising and would shift the focus to 1.0800. That said, overbought shorter-term conditions could lead to a couple of days of consolidation first. On the downside, a break of 1.0640 (‘strong support’ level was at 1.0580 yesterday) would indicate that the risk for further EUR strength has dissipated.”