Euro (EUR) could test the major resistance at 1.1400; a sustained rise above this level is unlikely. In the longer run, the likelihood of EUR breaking above 1.1400 is increasing; the next resistance is nearby at 1.1435, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

A sustained rise above 1.1400 is unlikely

24-HOUR VIEW: "EUR dropped to 1.1253 last Thursday. On Friday, we highlighted that 'despite the decline, there has been no clear increase in downward momentum.' We added, 'The current price movements are likely part of a range trading phase, expected to be between 1.1255 and 1.1325.' Instead of trading in a range, EUR soared to 1.1374, dropped sharply, but briefly, before recovering to end the day at 1.1365 (+0.74%). Although the sharp drop has slowed the upward momentum somewhat, EUR could test the major resistance at 1.1400 today. Based on the current momentum, a sustained rise above this level is unlikely. The next resistance at 1.1435 is also unlikely to come under threat. Support levels are at 1.1350 and 1.1325."

1-3 WEEKS VIEW: "In our most recent narrative from last Thursday (22 May, spot at 1.1325), we indicated that 'the price action suggests further EUR strength, with 1.1400 now in focus.' We added, 'to keep the momentum going, EUR must hold above 1.1235 (‘strong support’ level).' On Friday, EUR rose to 1.1374. Given the improving momentum, the likelihood of EUR breaking above 1.1400 is increasing. Should EUR break above 1.1400, there is a relatively nearby resistance at 1.1435. On the downside, the ‘strong support’ level is currently at 1.1275, up from 1.1235 previously."