Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group noted further upside momentum in EUR/USD still remains on the table in the next few weeks.

Key Quotes

24-hour view: “Our expectations for EUR to break the major resistance at 1.0550 did not materialize as it plummeted to 1.0426 in NY trade before rebounding strongly to close at 1.0538 (+0.15%). While upward momentum has eased somewhat, we see room for EUR to edge above 1.0550. However, EUR is unlikely to challenge the next resistance at 1.0620. Support is at 1.0505, followed by 1.0480.”

Next 1-3 weeks: “We continue to hold the same view as last Friday (02 Dec, spot at 1.0525). As highlighted, the risk for EUR remains on the upside and the next level to focus on is at 1.0620, followed by 1.0690. That said, after the sharp and brief drop to 1.0426 in NY trade on Friday (the decline came close to breaking our ‘strong support’ level at 1.0420), upward momentum has eased somewhat. While we continue to see upside risk, the 1.0620 level may not come into view so soon. On the downside, there is no change in the ‘strong support’ level at 1.0420.”