According to United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann, the Euro (EUR) has rebounded strongly from a low of 1.1573 against the US Dollar (USD) following an excessive selloff, but momentum remains subdued and upside is capped by nearby resistance levels [1]. Intraday, EUR/USD is expected to hold within a range of 1.1595–1.1640, with major support at 1.1550 and additional support at 1.1570 [1]. The strong resistance level is identified at 1.1650, and only a breach of this level would indicate that the downside risk toward 1.1550 is receding [1].
On a 1–3 week horizon, UOB notes that downside risks persist for EUR/USD, although oversold short-term conditions suggest that the major support at 1.1550 may not be tested immediately [1]. Longer-term targets for EUR/USD remain at 1.1800 and 1.1850, but market sentiment is described as cautious, with limited upside unless momentum improves and resistance levels are breached [1].
The recent sharp decline in EUR/USD was deemed excessive, and while a strong rebound occurred, analysts highlight that there is no clear increase in momentum, suggesting EUR/USD should remain within the specified range for now [1]. The market is currently in a range-trading phase, and the rapid increase in downward momentum previously observed has slowed somewhat following the rebound [1].
No specific market reactions or analyst opinions regarding broader implications were discussed in the article, but the overall tone remains cautious with a focus on technical levels and subdued momentum [1].
CONCLUSION
The Euro's rebound against the US Dollar is capped by resistance, with analysts at UOB highlighting subdued momentum and persistent downside risks. Unless EUR/USD breaches the strong resistance at 1.1650, the pair is expected to remain range-bound, reflecting cautious market sentiment. Longer-term targets remain higher, but immediate upside appears limited.