United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that EUR/USD rallied to 1.1272 before closing at 1.1227 as the US Dollar (USD) weakened on lower US yields. They see the pair in a short-term range between 1.1205 and 1.1265, while the one-to-three-week outlook stays constructive, with further gains contingent on a break above 1.1280 and support at 1.1180 holding.
Uptrend pauses below 1.1280 barrier
"24-HOUR VIEW: Following the sharp rise in EUR early yesterday, we highlighted the following: “Upward momentum is building, and there is room for EUR to test 1.1250. It is too early to determine whether EUR can break clearly above this level.” While EUR rose more than expected to 1.1272, it retreated from the high to close at 1.1227 (+0.30%). The immediate upward pressure has eased, and the current price movements are likely part of a range-trading phase between 1.1205 and 1.1265."
"1-3 WEEKS VIEW: Yesterday (04 Nov, spot at 1.1225), we highlighted that “the renewed upward momentum suggests EUR could test 1.1250.” We pointed out that “it must close above this level before a move to 1.1280 is likely.” However, EUR broke above 1.1250 and soared to a high of 1.1272 before retreating. While we continue to maintain a positive EUR stance, 1.1280 is acting as a key resistance now, and EUR must break above this level before further advances can be expected. Looking ahead, the next level to watch is 1.1320. On the downside, a breach of 1.1180 (‘strong support’ level was at 1.1160 yesterday) would indicate that the advance that started late last week has run its course."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.