UOB Group’s Markets Strategist Quek Ser Leang and Rates Strategist Victor Yong suggest the prospects for extra upside in EUR/USD seems to be losing momentum.

Key Quotes

24-hour view: “Our view for the ‘rally in EUR to continue’ was incorrect as it pulled back sharply from high of 1.0093. The price movement is likely part of a consolidation phase and we expect EUR to trade between 0.9925 and 1.0050 today.”

Next 1-3 weeks: “After the strong surge in EUR, we indicated yesterday (27 Oct, spot at 0.9960) that EUR is likely to rise further and the next level to monitor is at 1.0200. We did not expect the sharp pullback to 0.9956. The pullback has resulted in a quick loss of momentum and the chance of further EUR strength has diminished. However, only a break of 0.9880 (‘strong support’ level adjusted lower from 0.9950) would indicate that the EUR strength that started earlier this week has come to an end.”