In opinion of FX Strategists at UOB Group, EUR/USD could advance to 1.1520 once it clears 1.1485.

Key Quotes

24-hour view: “We expected EUR to ‘trade sideways between 1.1390 and 1.1445’ yesterday. Our view for consolidation was not wrong even though EUR traded within a narrower range than expected (1.1401/1.1447). The consolidation over the past few days appears to be drawing to a close and the upside risk is greater. A clear break of 1.1455 could lead to a quick rise to the major resistance at 1.1485. That said, if EUR breaks the support at 1.1390, it could trigger a drop to 1.1360.”

Next 1-3 weeks: “On Monday (07 Feb, spot at 1.1450), we highlighted that overbought shorter-term conditions could lead to a couple of days of consolidation first. We added, ‘as long as 1.1360 is not breached, the recent rally could extend further but EUR has to break the major resistance at 1.1485 before a move to 1.1520 can be expected’. In line with our expectations, EUR consolidated over the past few days. The consolidation phase appears to be coming to an end and a break of 1.1455 could lead to a quick rise to 1.1485. At this stage, the chance of a sustained rise above 1.1485 is not that high but it would remain intact as long as the ‘strong support’ level at 1.1360 is not breached.”