Euro (EUR) is likely to trade in a range between 1.1580 and 1.1625. 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: "On Tuesday, EUR dropped to a low of 1.1597. Yesterday, Wednesday, when EUR was at 1.1600, we highlighted the following: 'Today, EUR could test 1.1580, but a continued decline below this level is unlikely. The major support at 1.1540 is also unlikely to come into view for now. On the upside, resistance levels are at 1.1620 and 1.1640.' We were not wrong, as EUR dropped to a low of 1.1576 and then rebounded to close modestly higher at 1.1610 (+0.10%). 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."

1-3 WEEKS VIEW: "Following EUR’s price action two days ago, we highlighted yesterday (22 Oct, spot at 1.1600) that 'downward momentum is building.' We added that EUR “is likely to trade with a downward bias, potentially retesting last week’s low of 1.1540.” The downward bias will remain intact as long as 1.1660 (no change in ‘strong resistance’ level) is not breached."