EUR/USD: Rally may take a pause - UOB Group

Rally may take a pause; Euro (EUR) is likely to trade between 1.1240 and 1.1415 vs US Dollar (USD). In the longer run, further EUR strength is not ruled out, but it may first range-trade for a couple of days. The next resistance is at 1.1500, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The next resistance is at 1.1500

24-HOUR VIEW: "We pointed out last Friday that '1.1275 was the high in 2023.' We also pointed out that 'a break above 1.1275 could trigger a further rally' and 'the levels to monitor are 1.1350 and 1.1400.' The ensuing breakout above 1.1275 triggered a sharper than expected rally to 1.1473. EUR pulled back from the high to close at 1.1360, up by 1.46%. Given the pullback from deeply overbought territory, the rally may take a pause. Today, we expect EUR to trade between 1.1240 and 1.1415."

1-3 WEEKS VIEW: "Last Friday (11 Apr, spot at 1.1255), we indicate that EUR 'is likely to rally further, and the levels to monitor are 1.1400 and 1.1450. We did not expect EUR to surpassed both levels as quickly, as it jumped to a high of 1.1473. While further EUR strength is not ruled out, deeply overbought short-term conditions could lead to a couple of days of range-trading first. As long as 1.1180 ('strong support' level previously at 1.1070) is not breached, the EUR strength that started early this month could extend to 1.1500."