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FX Strategists at UOB Group noted the pair’s outlook remains neutral in the short-term horizon, while they expect it to test the upper end of the 1.1330/1.1490 range.

Key Quotes

24-hour view: “We highlighted last Friday “there is scope for EUR to test 1.1450 first before the rally should ease off”. EUR subsequently touched a high of 1.1456 before pulling back quickly. The recent upward pressure has clearly eased and the current price action is deemed as part of a consolidation phase. In other words, EUR is expected to trade sideways for today, albeit with a downward bias. Expected range for today; 1.1360/1.1425″.

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 the next couple of weeks. The current movement is viewed as the early stages of a sideway-trading phase even though the immediate bias is for EUR to probe the top of the expected 1.1330/1.1490 consolidation range. Looking ahead, a clear break back below 1.1330 would greatly increase the prospect for a sustained decline below the major 1.1300 support”.