In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, if EURUSD breaks above 1.0415 it should put a test of 1.0480 back on the radar in the near term.

Key Quotes

24-hour view: “We expected EUR to ‘trade sideways between 1.0340 and 1.0440’ yesterday. However, it dropped to 1.0303 before rebounding strongly to end the day at 1.0360. Despite the decline, downward momentum has barely improved and we see limited downside risk for EUR. For today, we expect EUR to trade between 1.0315 and 1.0415.”

Next 1-3 weeks: “On Wednesday (16 Nov, spot at 1.0350), we indicated that as long as 1.0260 (‘strong support’ level) is not breached, EUR could continue to advance even though 1.0480 might not be easy to break. Yesterday, EUR dropped to 1.0303 before rebounding. In order to keep the upward momentum going, EUR has to break and remain above 1.0415 in the next 1 to 2 days or the chance of it rising to 1.0480 will decrease quickly. Conversely, a break of 1.0280 (‘strong support’ level previously at 1.0260) would suggest that EUR is not advancing further.”