The current price movements are likely part of a range-trading phase between 1.1595 and 1.1645. In the longer run, EUR is expected to trade with an upward bias towards 1.1685; it is too early to determine whether it can break clearly above this level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR is expected to trade with an upward bias

24-HOUR VIEW: "Last Thursday, EUR rose sharply to a high of 1.1655. On Friday, when EUR was at 1.1630, we indicated that 'while the sharp rise appears excessive, there is scope for EUR to test the 1.1655 level again'. We also indicated that 'the next resistance at 1.1685 is unlikely to come under threat'. We were not wrong, as EUR rose to 1.1653 and then pulled back to close modestly lower at 1.1620 (-0.09%). There has been no further increase in upward momentum, and the current price movements are likely part of a range-trading phase. Today, we expect EUR to trade between 1.1590 and 1.1640."

1-3 WEEKS VIEW: "While we highlighted last Friday (14 Nov, spot at 1.1630) that EUR 'is expected to trade with an upward bias towards 1.1685', we pointed out that 'it is too early to determine whether it can break clearly above this level'. There is no change in our view. Overall, only a breach of 1.1575 (no change in ‘strong support’ level from last Friday) would indicate that the upward bias has faded."