United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann have highlighted increasing downside momentum in the EUR/USD currency pair following a sharp decline to 1.1591, although they note that the potential for a sustained break below the critical support level of 1.1585 is limited in the very near term [1]. The strategists observed that after a drop to 1.1591 during the New York session, the euro recovered to close at 1.1610, marking a 0.19% decrease for the day [1].
UOB's analysis indicates that as long as the euro remains below 1.1630, with minor resistance at 1.1620, it could test the major support at 1.1585. However, they believe that a continued decline below this level appears unlikely based on current momentum [1]. Over the next one to three weeks, the strategists had previously expected the euro to trade with an upside bias within a range of 1.1585 to 1.1670, but the recent drop to 1.1591 suggests that downward momentum is starting to build, though not enough to signal a sustained decline [1].
Should the euro close below 1.1585, UOB warns that this would increase the risk of a further move down toward the next major support at 1.1565. Conversely, a breach of the 1.1645 resistance level would indicate that the euro is likely to continue trading within its established range [1].
No specific market reactions or analyst opinions beyond UOB's technical outlook are mentioned in the source article [1].
CONCLUSION
UOB strategists see growing downside risks for the euro against the US dollar, with key support at 1.1585 in focus. While a sustained break below this level is considered unlikely in the near term, a daily close under 1.1585 could open the door to further declines. The euro is expected to remain range-bound unless significant support or resistance levels are breached.