In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, the probability that EUR/USD could convincingly break above 1.0750 appears to be losing traction.

Key Quotes

24-hour view: “Our view for EUR to ‘edge lower’ was incorrect as it surged to 1.0691 before closing on a strong note at 1.0665 (+0.84%). Upward momentum has improved, albeit not much. Today, EUR could advance further to 1.0705. The major resistance at 1.0750 is unlikely to come into view. Support is at 1.0645, followed by 1.0620.”

Next 1-3 weeks: “We indicated yesterday (01 Mar, spot at 1.0580) that the recent weakness in EUR has ended and we were of the view that EUR is likely to consolidate between 1.0530 and 1.0670 before heading lower at a later stage. We did not anticipate the strong rise in EUR to 1.0691. While the strong rise suggests there is scope for EUR to strengthen further, any advance is likely part of a corrective rebound. At this stage, the chance of a sustained rise above 1.0750 is not high. Overall, only a breach of the ‘strong support’ level, currently at 1.0590, would indicate that EUR is not rebounding further.”