Euro (EUR) could retest the 1.1750 level before a more sustained recovery is likely; the major support at 1.1715 is not expected to come into view. In the longer run, momentum indicators are turning flat; EUR is likely to trade in a range of 1.1715/1.1855 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Momentum indicators are turning flat

24-HOUR VIEW: "Following the volatile price action on Wednesday, we indicated yesterday that 'the current price movements are likely part of a consolidation phase between 1.1785 and 1.1865.' However, EUR dropped to a low of 1.1750 and then recovered to close at 1.1786 (- 0.22%). Although downward momentum has not increased significantly, EUR could retest the 1.1750 level before a more sustained recovery is likely. The major support at 1.1715 is not expected to come into view. Resistance is at 1.1810; if EUR breaks above 1.1825, it would indicate that the current downward pressure has eased."

1-3 WEEKS VIEW: "We shifted our EUR view to positive early this week. Two days ago (17 September, spot at 1.1865), we stated that 'the risk is for EUR to continue to rise, and the level to watch is 1.1955.' After EUR rose briefly to a high of 1.1918 and then pulled back sharply, we indicated yesterday (18 Sep, spot at 1.1820) that 'shorter-term upward momentum is starting to fade, but overall, as long as 1.1760 holds, there is still a chance, albeit not a high one, for EUR to rise toward 1.1955.' In the early NY session, EUR fell and broke below 1.1760 (low was 1.1750). Momentum indicators are turning flat, and EUR is likely to trade in a range of 1.1715/1.1855 for now."