The current price movements are likely part of a range-trading phase between 1.1630 and 1.1670. In the longer run, slight increase in momentum may lead to Euro (EUR) rising above 1.1680; it is too early to determine if it can maintain a foothold above this level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Slight increase in momentum

24-HOUR VIEW: "While we expected EUR to 'rise gradually' yesterday, we pointed out that it 'does not appear to have enough momentum to break above the major resistance at 1.1680.' We noted that 'there is another resistance level at 1.1665.' We also noted that 'support is at 1.1630, followed by 1.1620.' Our assessments were not wrong, as EUR rose to 1.1668, fell to 1.1625, and then recovered to close little changed at 1.1650 (+0.06%). The current price movements are likely part of a range-trading phase. Today, we expect EUR to trade between 1.1630 and 1.1670."

1-3 WEEKS VIEW: "On Monday (27 Oct, spot at 1.1630), we indicated that 'the current price movements are likely part of a range-trading phase.' We expected EUR to 'trade between 1.1585 and 1.1680 for the time being.' Yesterday, EUR rose to a high of 1.1668. The slight increase in upward momentum suggests EUR may rise above 1.1680. That said, it is too early to determine if EUR can maintain a foothold above this level. The mild upward pressure will remain intact as long as EUR holds above 1.1605 (‘strong support’ level). Looking ahead, if EUR were to break clearly above 1.1680, it may then retest the month-to-date high, near 1.1730."