UOB analysts Quek Ser Leang and Lee Sue Ann maintain a cautious outlook on the EUR/USD currency pair after it closed nearly unchanged at 1.1543, registering a marginal decline of 0.03% [1]. Despite the slowing of downside momentum in intraday trading, the analysts see continued potential for the euro to move lower toward 1.1520 in the short term, with the next significant support level identified at 1.1490 [1].
In their 24-hour view, UOB notes that while the euro fell more than expected on Monday, it subsequently recovered from a low of 1.1525. The analysts believe there is still a chance for the EUR/USD to test 1.1520 before any sustained rebound occurs, though they consider it unlikely that the major support at 1.1490 will be threatened imminently [1]. Resistance levels are seen at 1.1550 and 1.1565 [1].
Looking at the 1–3 week horizon, UOB reiterates that the sharp increase in downside momentum suggests the euro could decline toward 1.1490 unless the pair breaks above the strong resistance at 1.1585. A breach of this resistance would indicate that the downward pressure observed since late last week is beginning to ease [1].
No specific market reactions or analyst opinions beyond UOB's technical outlook are mentioned in the article, and there are no references to broader market implications or economic data releases [1].
CONCLUSION
UOB analysts continue to see downside risks for EUR/USD, with support at 1.1490 and resistance at 1.1585. The pair's momentum remains mildly negative, but a significant breakdown below 1.1490 is not expected in the immediate term. Market participants are advised to watch for a breach of resistance as a signal of easing downward pressure.