EUR/USD could confront 1.0785 in the near term – UOB

In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, further upside could motivate EUR/USD to challenge the 1.0785 level in the next few weeks.

Key Quotes

24-hour view: “Yesterday, we highlighted that EUR ‘is likely to strengthen further but it might not be able to maintain a foothold above 1.0785’. However, EUR traded in a relatively tight range of 1.0710/1.0758 before closing largely unchanged at 1.0734 (+0.06%). EUR is in a consolidation phase and it is likely to trade between 1.0700 and 1.0760 today.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (10 Jan, spot at 1.0730). As highlighted, the ease with which EUR took out 1.0735 suggests it is likely to take a crack at another strong resistance at 1.0785. The upside risk is intact as long as EUR stays above 1.0650 (no change in ‘strong support’ level). Looking ahead, a breach of 1.0785 will shift the focus to 1.0900.”