Euro (EUR) may just have enough momentum to test 1.1490 before the risk of a recovery increases. In the longer run, the next level to watch is at 1.1490, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Next level to watch is at 1.1490

24-HOUR VIEW: "EUR fell as we expected last Friday. Yesterday, Monday, we indicated that 'while further EUR weakness is not ruled out, positive divergence is forming on momentum indicators and any decline is unlikely to threaten 1.1490 today'. We noted that 'there is another support level at 1.1510'. We were not wrong, as EUR dipped to a low of 1.1504 before closing at 1.1518 (-0.14%). While positive divergence is still apparent, EUR may just have enough momentum to test 1.1490 today before the risk of a recovery increases. A sustained break below 1.1490 appears unlikely. The next support at 1.1450 is also unlikely to come under threat. Resistance is at 1.1540, and if EUR breaks above 1.1555, it would mean that 1.1490 is not coming into view."

1-3 WEEKS VIEW: "Last Friday (31 Oct, spot at 1.1565), we indicated that 'the price action indicates that EUR is likely to break below 1.1540'. We added, 'the next level to watch is at 1.1490'. After EUR fell to a low of 1.1520, we stated yesterday (03 November, spot at 1.1535) that 'the next level to watch is 1.1490'. We continue to hold the same view. Overall, only a breach of 1.1580 (‘strong resistance’ level was at 1.1605 yesterday) would suggest that EUR is not weakening further. Looking ahead, if EUR breaks below 1.1490, the focus will shift to 1.1450."