Strong rebound in Euro (EUR) has scope to test 1.1760; the major resistance at 1.1790 is not expected to come under threat. In the longer run, EUR could rise but any advance is likely part of a higher range of 1.1650/1.1790, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Major resistance at 1.1790 is not expected to come under threat

24-HOUR VIEW: "Yesterday, we expected EUR to 'trade in a range between 1.1675 and 1.1735.' However, EUR briefly dropped to 1.1661 and then rebounded strongly to a high of 1.1745. The rebound has scope to extend but given that there has been no significant increase in upward momentum, any advance is likely to be limited to a test of 1.1760. The major resistance at 1.1790 is not expected to come under threat. Support levels are at 1.1715 and 1.1690."

1-3 WEEKS VIEW: "Our latest narrative was from Monday (08 Sep, spot at 1.17150), in which we highlighted that EUR 'could rise but any advance is likely part of a higher range of 1.1650/1.1790.' Yesterday, EUR briefly dropped to 1.1661 and then rebounded. There is no clear increase in either downward or upward momentum, and we continue to expect EUR to trade in a range of 1.1650/1.1790 for now."