EURUSD remains focused on 1.0415 near term – UOB

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang note EURUSD needs to clear 1.0415 to challenge 1.0480.

Key Quotes

24-hour view: “We highlighted last Friday that there was limited downside risk for EUR and we expected it to ‘trade between 1.0315 and 1.0415’. EUR subsequently traded within a narrower range than expected (1.0311/1.0395).  The underlying tone has softened somewhat and EUR is likely to edge lower today. However, any decline is unlikely to break the support at 1.0280 (next support is at 1.0240). Resistance is at 1.0360, followed by 1.0395.”

Next 1-3 weeks: “There is no change in our view from last Friday (18 Nov, spot at 1.0360). As highlighted, in order to keep the current upward momentum going, EUR has to break and remain above 1.0415 soon or the chance of it rising to 1.0480 will decrease quickly. Conversely, a break of 1.0280 (no change in ‘strong support’ level) would suggest that EUR is not advancing further.”