UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang note further upside in EURUSD is expected to meet a strong hurdle around 1.0480.

Key Quotes

24-hour view: “We highlighted yesterday that the outlook for EUR is mixed and we expected it to ‘trade in a choppy manner between 1.0270 and 1.0420’. However, EUR rose to a high of 1.0438 before easing off. The price actions appear to be part of a consolidation and we expect EUR to trade sideways between 1.0340 and 1.0440 today.”

Next 1-3 weeks: “Our update from yesterday (16 Nov, spot at 1.0350) still stands. As indicated, as long as the ‘strong support’ level at 1.0260 (level was at 1.0230 yesterday) is not taken out, EUR could continue to advance. However, Tuesday’s high of 1.0480 is acting as a solid resistance and EUR may find this level difficult to break.”