In opinion of FX Strategists at UOB Group, the rally in EUR/USD is now targeting the 1.1235 level ahead of 1.1285.
24-hour view: “Our view for the recent rally in EUR to “take a break” was incorrect as it continues to rise (overnight high of 1.1195). Conditions remain severely overbought but the tenacious rally could extend to 1.1235 first before a pull-back can be expected. Support is at 1.1150 followed by 1.1125.”
Next 1-3 weeks: “Yesterday (02 Jun, spot at 1.1125), we held the view that the ‘rally in EUR could pause for a couple of days first before moving to 1.1190’. Amid overbought conditions, EUR extended its advance and edged above 1.1190 (high of 1.1195). It appears that the rally in EUR is not ready for a break just yet. From here, the next level to focus on is at 1.1235 followed by 1.1285. On the downside, the ‘strong support’ level has moved higher to 1.1095 from yesterday’s level of 1.1045. A breach of the ‘strong support’ would indicate the positive phase that started last week (see annotations in chart below) has run its course.”