United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight that EUR/USD failed to hold its recent range, slipping to 1.1172 and reinforcing a short-term downside bias. Intraday, the pair is seen drifting toward 1.1150, with 1.1135 considered a lower but less likely target. On a 1–3 week horizon, downward momentum is tentatively building, with potential tests of 1.1135 while resistance is capped near 1.1220.

Tentative bearish momentum emerging

"24-HOUR VIEW: We indicated yesterday that EUR “could trade between 1.1185 and 1.1230.” The subsequent price movements did not unfold as expected. EUR rose to 1.1226 before declining to a low of 1.1172. Given the increasing downward momentum, the bias for EUR is tilted to the downside toward 1.1150. The next support at 1.1135 is likely out of reach for now. Resistance is at 1.1190, followed by 1.1205."

"1-3 WEEKS VIEW: We have been expecting EUR to trade in a range since the middle of the month. In our most recent narrative from last Thursday (22 Oct, spot at 1.1230), we stated that “the price movements still appear to be part of a range-trading phase, but a narrower 1.1170/1.1270 range is likely sufficient to contain EUR for now.” Yesterday, EUR fell to a low of 1.1172. There has been a tentative buildup in downward momentum, and from here, EUR could edge lower, potentially testing 1.1135. To sustain the downward momentum, EUR must hold below the ‘strong resistance’ level, now at 1.1220."

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