Tentatively slowing downward momentum and oversold conditions suggest consolidation in EUR, likely between 1.1475 and 1.1525. In the longer run, EUR is expected to weaken further; the next level to watch is 1.1450, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR is expected to weaken further

24-HOUR VIEW: "Two days ago, we expected EUR to weaken. After it fell more than expected to a low of 1.1472, we highlighted yesterday that 'further declines are not ruled out'. However, we pointed out that 'clear positive divergence, suggests EUR may not be able to reach 1.1450 today'. The subsequent price movements did not turn out quite as expected, with EUR trading within a relatively tight range between 1.1468 and 1.1497. Downward momentum is tentatively slowing, and this, combined with oversold conditions suggests consolidation today, likely between 1.1475 and 1.1525."

1-3 WEEKS VIEW: "We have held a negative EUR stance since late last week (see annotations in the chart below). Yesterday (05 Nov, spot at 1.1485), we indicated that EUR 'is expected to weaken further, and the next level to watch is 1.1450'. EUR subsequently dipped to a fresh low of 1.1468 before closing slightly higher at 1.1491 (+0.08%), snapping a five-day losing streak. Downward momentum has slowed somewhat, but as long as EUR holds below 1.1555 (no change in ‘strong resistance’ level from yesterday), there is still a chance for EUR to decline to 1.1450."