UOB group FX strategists are now waiting EUR / USD exceed the 1.1000 barrier in the coming weeks.
24 hour view: “The sudden strong surge in the euro during London hours was unexpected. Rapid rally easily eliminated several high resistance levels. Although further gains are not excluded, it is unlikely that the euro will be able to maintain the frenzied pace of the advance. From there, a break of 1.0950 would not be surprising but for today, 1.0990 is probably out of reach. Support is at 1.0890 followed by 1.0860. “
Next 1-3 weeks: “We have maintained mixed prospects in EUR since May 06 and expected the EUR to trade erratically in a wide range. After “going nowhere” for about 2 weeks, the EUR was shaken yesterday when it easily passed several strong resistance levels and posted a huge gain of + 0.90% (1.0912), the most big day advance in 6 weeks. The upward momentum has improved and from there the EUR is expected to trade with an upward bias towards the early May high of 1.1017. At this point, the chances of a clear break at this level are not high. On the downside, 1.0825 acts as a level of “solid support”. “