EUR/USD: Likely to test 1.1455 in the near term - UOB Group

Recovery has gained momentum; Euro (EUR) could test 1.1455 against US Dollar (USD), but a sustained rise above this level is unlikely. In the longer run, EUR outlook is revised to positive; the immediate levels to watch are 1.1495 and 1.1530, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR outlook is revised to positive

24-HOUR VIEW: "EUR pulled back to 1.1362 on Tuesday. Yesterday, Wednesday, when EUR was at 1.1385, we indicated that 'there is no significant increase in downward momentum, and instead of continuing to pull back, EUR is more likely to trade in a range of 1.1360/1.1430.' EUR subsequently dipped to 1.1356 before recovering, reaching 1.1434. The recovery has gained some momentum, and today, EUR could test this week's high, near 1.1455. A breach of this level is not ruled out, but the current momentum suggests a sustained rise above this level is unlikely. Any further advance is also unlikely to reach the major resistance at 1.1495. Support is at 1.1400, followed by 1.1380."

1-3 WEEKS VIEW: "Our latest narrative was from two days ago, 03 Jun, when EUR was at 1.1445. We revised our EUR outlook to positive, and we indicated 'the immediate levels to watch are 1.1495 and 1.1530.' Although EUR has not been able to make much headway on the upside since then, we will maintain our view as long as 1.1345 (no change in 'strong support' level) is intact."