Upward momentum is starting to build; the odds of Euro (EUR) breaking above 1.1790 are increasing, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR might move towards 1.1830

24-HOUR VIEW: "EUR traded in a quiet manner between 1.1700 and 1.1747 last Friday. Yesterday, we indicated that 'momentum indicators are mostly flat, and EUR is likely to continue to range-trade today, probably in a range of 1.1705/1.1755.' We did not anticipate the rapid build-up in momentum that led to EUR rising to a high of 1.1774. The buildup in momentum is likely to continue to carry EUR higher. That said, it is unclear for now whether there is sufficient momentum for EUR to break above the major resistance at 1.1790. To sustain the momentum build-up, EUR must hold above 1.1735, with minor support at 1.1750."

1-3 WEEKS VIEW: "We highlighted last Monday (08 Sep, spot at 1.1715) that EUR 'could rise but any advance is likely part of a higher range of 1.1650/1.1790.' Since then, EUR has been trading within a range of 1.1661/1.1779. Yesterday, EUR rose to 1.1774 and then closed on a firm note at 1.1760 (+0.23%). Upward momentum is starting to build, and the odds of EUR breaking above 1.1790 are increasing and will continue to increase as long as EUR holds above 1.1715 (‘strong support’ level). Looking ahead, a clear break above 1.1790 will shift the focus to 1.1830."