Euro: Upside bias targets 1.1725 against US Dollar – UOB

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann highlight that EUR/USD has broken to a three‑month high near 1.1680 as Dollar weakness and strong momentum underpin the pair. They see room for further gains toward 1.1725, though intraday moves are expected to be capped around 1.1700, with support now strengthened at 1.1635 and 1.1600 over the next few days.

Euro rally tests 1.17 ceiling

"24-HOUR VIEW: Yesterday, EUR surged by 0.89% and closed at a three-month high of 1.1677. Unsurprisingly, after such a sharp rally, conditions are deeply overbought. However, strong momentum suggests that there is scope for the rally to extend. That said, any advance could stay within a 1.1635/1.1700 range. In other words, a sustained rise above 1.1700 is unlikely."

"1-3 WEEKS VIEW: We turned positive on Monday (17 Aug, spot at 1.1570), indicating that “the price action suggests EUR is likely to trade with an upside bias.” On Tuesday (18 Aug, spot at 1.1580), we indicated that “while the upside bias remains intact, given that there is no significant increase in upward momentum, EUR must break and hold above 1.1615 before a move to 1.1655 and beyond can be expected.” Yesterday, EUR broke above 1.1615, as it rallied sharply to 1.1679. EUR closed at a three-month high of 1.1677, up by 0.89%. Given the strong momentum, there is room for further upside in EUR toward 1.1725. We will maintain our positive EUR view as long as it stays above 1.1600 (‘strong support’ level previously at 1.1525)."

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