According to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, a sustained advance past 1.1120 in EUR/USD seems unlikely for the time being.

Key Quotes

24-hour view: “After EUR soared to a high of 1.1095 and then pulled back on Wednesday, we highlighted yesterday that ‘the rapid rise appears to be overdone’ and we were of the view that EUR ‘is unlikely to advance much further’. We expected EUR to trade in a range between 1.1000 and 1.1100. EUR traded in a narrower range than expected (1.0991/1.1063) before closing slightly lower at 1.1027 (-0.12%). We continue to expect EUR to range trade but the slightly soft underlying tone suggests a lower range of 1.0980/1.1060.”

Next 1-3 weeks: “Our update from yesterday (27 Apr, spot at 1.1045) is still valid. As highlighted, despite the relatively strong advance to 1.1095 on Wednesday, upward momentum has not improved much. While EUR could ratchet higher towards 1.1120, the odds for a sustained rise above this major resistance level are not high for now. In order to keep the momentum going, EUR should not break below 1.0950 (no change ‘strong support’ level).”