Further upside is likely in EUR/USD once it clears 1.1050, according to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: Yesterday, we expected EUR to break above 1.1010. However, we noted that “overbought conditions suggest the next resistance at 1.1050 is likely out of reach.” While EUR broke above 1.1010, it did not threaten 1.1050. EUR rose to 1.1026, dropped to 1.0975 and then rebounded to end the day little changed at 1.1006 ( 0.06%). Upward momentum has slowed somewhat, but there is scope for EUR to rise further. Today, 1.1050 could be just within reach. Support is at 1.0980, followed by 1.0945. 

Next 1-3 weeks: Our update from yesterday (11 Jul, spot at 1.1000) still stands. As highlighted, upward momentum remains strong, and if EUR breaks above 1.1050, the next level to aim for is the year-to-date high of 1.1095. In order to maintain the buildup in momentum, EUR must not break below 1.0930 (‘strong support’ level was at 1.0905 yesterday).