FX Strategists at UOB Group stay neutral on spot and noted it could climb to the 1.1490 area in the next weeks.
Key Quotes
24-hour view: “EUR traded in a relatively muted manner yesterday, holding within a 50 pips range (between 1.1388 and 1.1438). Upward momentum is beginning to pick up and while a move above last week’s 1.1456 peak would not be surprising, a sustained move above this level seems unlikely for now (the next resistance is at 1.1470 followed closely by another rather strong level at 1.1490). Support is at 1.1395 but only a break of 1.1370 would indicate that the current mild upward pressure has eased”.
Next 1-3 weeks: “There is not much to add to last Friday’s (02 Nov, spot at 1.1400) update wherein last Tuesday’s (31 Oct) low of 1.1299 is deemed as a short-term bottom and this level is expected to hold for a couple of weeks. On a short-term basis, the immediate bias is for EUR to ‘probe’ the top of the expected 1.1330/1.1490 consolidation range. At this stage, the prospect for a break above the range is not high but the odds would continue to improve if EUR can continue to hold above 1.1370 in the coming days. Looking ahead, a break above 1.1490 would suggest the 1.1299 low could turn out to be a significant bottom”.
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