FX Strategists at UOB Group Quek Ser Leang and Peter Chia suggested EUR/USD faces further gains once 1.0800 is cleared.

Key Quotes

24-hout view: “We highlighted last Friday that the ‘rapid rise in EUR could extend but the major resistance at 1.0800 is unlikely to come under threat’. Our expectations did not quite materialize as EUR rose to 1.0764 before easing off to close at 1.0718 (-0.25%). Momentum indicators are turning neutral and EUR appears to have moved into a consolidation phase. For today, EUR is likely to trade between 1.0690 and 1.0760.”

Next 1-3 weeks: “There is no change in our view from last Friday (03 Jun, spot at 1.0745). As highlighted, EUR has to break clearly above 1.0800 before further advance is likely. The chance for EUR to break 1.0800 is quite high and would increase further as long as EUR does not move below 1.0675 (‘strong support’ level) within these couple of days.”