FX Strategists at UOB Group noted the short-term outlook on EUR/USD still remains positive.
24-hour view: “Our view for EUR yesterday was it “could retest 1.1090 but any advance is viewed as part of a higher 1.1050/1.1090 range”. However, EUR traded quietly and within a narrow range of 1.1061/1.1083. The underlying tone still appears to be positive and for today, EUR could edge higher but the strong 1.1115 level is not likely to come into the picture (minor resistance is at 1.1100). Support is at 1.1060 followed by 1.1040”.
Next 1-3 weeks: “EUR traded in a tight 22 pips range yesterday (between 1.1061 and 1.1083), the second smallest 1-day range so far this year. The quiet price action offers no fresh clues and we continue to hold on to the same view from Monday (18 Nov, spot at 1.1055). The current price action is still viewed as part of a 1.1010/1.1115 sideway-trading range even though the near-term bias is on the upside. Looking forward, if EUR were to crack 1.1115, the focus would shift to 1.1150. All in, the current mild upward pressure is expected to remain intact unless EUR drops back below 1.1040 within these few days”.