Further upside in EUR/USD is expected to meet a tough resistance at the 1.0500 region in the near term, suggest Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “EUR traded in a choppy manner yesterday as it plummeted briefly to 1.0288 before reversing sharply and soared to a high of 1.0428. Further EUR strength is not ruled out but the major resistance at 1.0500 is unlikely to come into view today (there is another resistance at 1.0465). Support is at 1.0390, followed by a rather strong level at 1.0365.”

Next 1-3 weeks: “Our most recent narrative was from Tuesday (29 Nov, spot at 1.0345) where EUR is likely to trade between 1.0260 and 1.0430. Yesterday (30 Nov), EUR surged to within a couple of pips of 1.0430 (high of 1.0428). The rapid buildup of momentum suggests that EUR will continue to strengthen, albeit at a slower pace. That said, 1.0500 is a solid resistance and might not be easy to break. The upside risk is intact as long as EUR does not move below 1.0330.”