Bias for Euro (EUR) is on the upside, but any advance might not reach 1.1050. In the longer run, decrease in momentum indicates the chance for EUR to rise has diminished; a breach of 1.0850 would suggest EUR has entered a range-trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Chance for EUR to rise has diminished

24-HOUR VIEW: "Following EUR’s choppy price movements on Monday, we indicated yesterday 'the price action provides no fresh clues.' We expected EUR to 'trade between 1.0860 and 1.1030.' EUR, however, traded in a narrower range than expected (1.0886/1.0991). Despite the relatively quiet price movements, there has been a slight increase in upward momentum. The bias for today is on the upside, but any advance might not reach 1.1050. The next resistance at 1.1090 is unlikely to come into view. Support levels are at 1.0950 and 1.0920."

1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (08 Apr, spot at 1.0925). As highlighted, the pullback in EUR to 1.0881 on Monday 'has resulted in a decrease in upward momentum, and the chance for EUR to rise has diminished.' A breach of 1.0850 (no change in ‘strong support’ level) would indicate that instead of advancing further, EUR 'has entered a range-trading phase.' Looking ahead, if EUR closes above 1.1050, it will increase the likelihood of it retesting the month-to-date high, near 1.1145."

Source: Fxstreet