24-hour view: We noted yesterday that “the current price action is likely part of a consolidation phase,” and we expected EUR to trade in a range between 1.0815 and 1.0880. While EUR rose to a high of 1.0895 in NY trade, it pulled back quickly to end the day little changed at 1.0850 (+0.04%). The price action still appears to be consolidative, and we continue to expect EUR to trade in a range, likely between 1.0820 and 1.0880.
Next 1-3 weeks: Our update from Wednesday (15 Nov, spot at 1.0880) still stands. As highlighted, further EUR strength appears likely, and the level to monitor is 1.0945. Overall, only a breach of 1.0770 (no change in ‘strong support’ level) would indicate that EUR is not strengthening further.