EUR/USD: The levels to watch are 1.1640 and 1.1700 – UOB Group

Conditions are deeply overbought; any further advance is likely part of a higher range of 1.1530/1.1640. In the longer run, EUR is likely to continue to rise; the levels to watch are 1.1640 and 1.1700, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR is likely to continue to rise

24-HOUR VIEW: "While we indicated yesterday that 'there is scope for EUR to continue to rise', we were of the view that “the major resistance at 1.1535 is probably out of reach.” However, EUR lifted off and surged to a high of 1.1631 before closing at 1.1583 (+0.84%), its highest level since Nov 2021. Conditions are deeply overbought, and while EUR may rise above 1.1631, any further advance is likely part of a higher range of 1.1530/1.1640."

1-3 WEEKS VIEW: "After EUR soared and closed 0.56% higher at 1.1487 two days ago, we indicated yesterday (12 Jun. spot at 1.1495) that 'given the rapid buildup in upward momentum, EUR could continue to rise towards 1.1535.' However, we pointed out that 'it is too early to tell if there is enough momentum for EUR to reach last month’s high, near 1.1575.' EUR subsequently not only broke above both levels but also surged to a high of 1.1631. There has been a sharp increase in upward momentum, and EUR is likely to continue to rise. The levels to watch are 1.1640 and 1.1700. On the downside, if EUR were to break below 1.1480 (‘strong support’ level was at 1.1425 yesterday), it would indicate that the immediate upward pressure has eased."