Euro (EUR) appears to have entered a consolidation phase between 1.1505 and 1.1550. In the longer run, the bias for EUR has shifted to the downside; it is too early to tell if it can reach 1.1470, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Bias for EUR has shifted to the downside

24-HOUR VIEW: "When EUR was at 1.1540 in the early Asian session yesterday, we held the view that it 'could test 1.1500 before rebounding'. We were also of the view that 'the major support at 1.1470 is unlikely to come under threat'. EUR subsequently dropped to 1.1506, rebounded to 1.1549, and then eased to close modestly lower at 1.1527 (-0.08%). EUR appears to have entered a consolidation phase. Today, we expect EUR to trade between 1.1505 and 1.1550."

1-3 WEEKS VIEW: "Yesterday (20 Nov, spot at 1.1540), we indicated that 'the bias has shifted to the downside, even though it is currently too early to tell whether EUR can reach the early-month low, near 1.1470'. While EUR dropped to 1.1506, it rebounded to close at 1.1527 (-0.08%). There has been no further increase in downward momentum, and it remains unclear for now whether EUR can reach the major support at 1.1470. On the upside, if EUR breaks above 1.1580 (‘strong resistance’ was at 1.1595 yesterday), it would indicate that the downward bias has faded."