According to FX Strategists at UOB Group, EUR/USD is now seen navigating between 1.0870 and 1.1180 in the next weeks.

Key Quotes

24-hour view: “We did not anticipate the outsized surge that sent EUR rocketing to a high of 1.1094 yesterday. The swift and sharp rise appears to be running ahead of itself and EUR is unlikely to strengthen much further. For today, EUR could consolidate and trade between 1.1000 and 1.1100.”

Next 1-3 weeks: “We first turned negative on EUR more than weeks ago. In our latest narrative from Monday (07 Mar, spot at 1.0875), we highlighted that EUR is still weak and the next level to focus on is at the long-term support at 1.0805. EUR subsequently dropped to 1.0804 before rebounding. Yesterday (09 Mar), EUR lifted off and rocketed to 1.1094 before closing higher by a whopping 1.61% (NY close of 1.1075), its largest 1-day advance since Jun 2016. The break of our ‘strong resistance’ at 1.1000 indicates that the weak phase has come to an end. Despite the outsized advance, it appears to soon to expect a major reversal. Further volatility would not be surprising and EUR could trade between 1.0870 and 1.1180 for now.”