UOB analysts Quek Ser Leang and Lee Sue Ann report that the EUR/USD currency pair is firming after a brief dip to 1.1575, with upward momentum beginning to build. The analysts expect the Euro to trade between 1.1590 and 1.1685 in the coming sessions, identifying 1.1660 as a near-term upside level, while major resistance at 1.1685 is unlikely to be tested immediately as downward momentum has largely faded [1].
On Thursday, the Euro briefly dropped to 1.1575 before rebounding. By Friday, the Euro traded within a range of 1.1587 to 1.1622 and closed at 1.1602, down 0.14% for the day, but opened higher the following day. The analysts note that support levels are at 1.1625 and 1.1610 [1].
Looking at the 1-3 week view, the analysts highlight that the previous negative outlook for the Euro has shifted to neutral, as downward momentum has eased. They state that a breach of the 1.1655 'strong resistance' level would suggest that 1.1575 marks the extent of the recent decline. For now, they expect the Euro to remain within the 1.1590 to 1.1685 range [1].
No significant market reactions or broader implications are discussed in the article, and there are no forward-looking statements from other analysts [1].
CONCLUSION
The Euro is showing signs of upward momentum against the US Dollar but remains within a defined neutral range. UOB analysts expect limited movement in the near term, with key resistance and support levels identified. Market impact is expected to be low as the currency consolidates.