FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang suggested EUR/USD could accelerate its gains on a close above the 1.0800 yardstick.

Key Quotes

24-hour view: “Our view for EUR to ‘consolidate and trade between 1.0690 and 1.0765’ yesterday was incorrect as it rose to a high of 1.0786 before closing on a firm note at 1.0777 (+0.47%). While upward momentum still appears to be lackluster, there is scope for EUR to test the major resistance at 1.0800. For today, the next resistance at 1.0840 is not expected to come under threat. Support is at 1.0745 but only a break of 1.0720 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “We highlighted yesterday that ‘he risk is still on the upside but in view of the lackluster upward momentum, it is left to be seen if EUR could extend its advance to 1.0800’. EUR subsequently rose to 1.0786 and the chance for EUR to break 1.0800 has increased, albeit by just a tad. That said, EUR to has to close above 1.0800 before further sustained advance is likely. The upside risk is intact as long as EUR does not move below 1.0695 (‘strong support’ level was at 1.0655 yesterday). Looking ahead, the next resistance above 1.0800 is at 1.0840.”