FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang noted EUR/USD still faces some consolidation but could break above the 1.0630 level in the next few weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the bias for EUR is tilted to the upside but any advance is expected to encounter strong resistance at 1.0605’. As expected, EUR strengthened even though it cracked 1.0605 and rose to 1.0614 before pulling back quickly. Upward momentum has not improved by much and EUR is unlikely to advance further. For today, EUR is likely to trade between 1.0540 and 1.0615.”

Next 1-3 weeks: “We have expected EUR to consolidate for more than a week now. While shorter-term upward momentum is beginning to build, there is no change in our view for now. That said, the risk of EUR breaking above 1.0630 has increased. Meanwhile, EUR could consolidate within a range of 1.0460/1.0630 (narrowed from 1.0430/1.0630 previously).”