The Euro (EUR) is likely to strengthen against the US Dollar (USD) further towards 1.1225, but the significant resistance level at 1.1275 is unlikely to come into view today, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

EUR targets the 2023 high of 1.1275

24-HOUR VIEW: “Last Friday, we expected EUR to trade in a range between 1.1085 and 1.1155. EUR traded sideways until NY trade, when it lifted off and touched 1.1200. EUR closed on a strong note at 1.1190 (+0.70%). While conditions are overbought, strong upward momentum suggests further EUR strength, likely towards 1.1225. The significant resistance level of 1.1275 is unlikely to come into view today. Support levels are at 1.1165 and 1.1145.”

1-3 WEEKS VIEW: “In our most recent narrative from last Thursday (22 Aug, spot at 1.1155), we indicated that ‘solid momentum after the recent price action indicates further EUR strength is likely.’ However, we noted that ‘it remains to be seen whether the 2023 high of 1.1275 is within reach in the next couple of weeks.’ Last Friday, EUR soared to a high of 1.1200. The boost in momentum has increased the likelihood of EUR reaching 1.1275. Overall, we will continue to hold a positive EUR view provided that the ‘strong support’ level at 1.1105 (level previously at 1.1045) is not breached.”