EUR/USD now faces resistance at 1.0400 – UOB

FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang suggest further upside could lift EUR/USD to the 1.0400 hurdle.

Key Quotes

24-hour view: “EUR lifted off during NY session and rocketed to 1.0368 before coming back down to close at 1.0297 (+0.84%). The strong surge appears to be overdone and EUR is unlikely to advance further. For today, EUR is more likely to trade sideways between 1.0260 and 1.0350.”

Next 1-3 weeks: “After trading within a 1.0100/1.0300 range for a few weeks, EUR lifted off and cracked 1.0300 during NY session (high has been 1.0368). Further EUR strength appears likely even though overbought shorter-term conditions suggest a slower pace of advance. The next resistance level of note is at 1.0400. On the downside, a break of 1.0230 (‘strong support’ level) would indicate that the current rapid build-up in upward momentum has fizzled out.”