Euro (EUR) is likely to trade in a range between 1.1590 and 1.1635. In the longer run, downward momentum is building; EUR is likely to trade with a downward bias, potentially retesting the 1.1540 level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Downward momentum is building

24-HOUR VIEW: "EUR dropped to a low of 1.1576 two days ago and then rebounded. Yesterday, we highlighted that 'the rebound from oversold conditions suggests that instead of weakening, EUR is more likely to range-trade today, expected to be between 1.1585 and 1.1625.' Our view of range-trading was not wrong, as EUR traded in a range of 1.1584/1.1620 before closing largely unchanged at 1.1617 (+0.06%). The price movements still appear to be part of a range-trading phase. Today, we expect EUR to trade between 1.1590 and 1.1635."

1-3 WEEKS VIEW: "On Wednesday (22 Oct, spot at 1.1600), we highlighted that 'downward momentum is building.' We also highlighted that EUR 'is likely to trade with a downward bias, potentially retesting last week’s low of 1.1540.' Since then, EUR has not been able to make much headway on the downside. The buildup in momentum is starting to fade, but only a breach of 1.1640 (no change in ‘strong resistance’ level) would indicate that EUR is not ready to head lower toward 1.1540."