UOB analysts Quek Ser Leang and Lee Sue Ann note that EUR/USD’s sharp rally has left the pair overbought intraday, but further gains toward 1.1945 are possible before consolidation. On a 1–3 week view, the bank now sees scope for continued upside, contingent on a daily close above 1.1945 to open 1.1980, while support is defined at 1.1840.

Overbought Euro still has room higher

"The sharp rally appears excessive, but EUR could test 1.1945 before leveling off."

"Based on the overbought momentum, a continued rise above this level appears unlikely."

"Downward momentum has faded, and the rapid increase in momentum suggests that EUR could continue to rise."

"However,, EUR must close above 1.1945 before a move to 1.1980 can be expected."

"The odds of EUR closing above 1.1945 will remain intact as long as EUR holds above 1.1840 (‘strong support’ level)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)