United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann maintain a negative outlook on the EUR/USD pair after it closed at 1.1447, highlighting the potential for further Euro weakness against the US Dollar. The analysts note that intraday support lies at 1.1415, with a key support level at 1.1400, though they express skepticism about a sustained break below this threshold. On a 1–3 month horizon, moving averages indicate building downside momentum, with 1.1400 identified as the next daily support level [1].
In recent trading, the Euro rose to 1.1495 two days prior but subsequently pulled back, closing 0.13% lower at 1.1447. The anticipated decline in the Euro exceeded UOB's expectations, as the currency dropped to a low of 1.1428. Despite this, the analysts believe that any further decline is unlikely to reach 1.1400 in the immediate term, citing a lack of clear increase in downward momentum. Minor support is noted at 1.1415, with resistance levels at 1.1460 and 1.1475 [1].
UOB has maintained a negative stance on the Euro since early last week, previously forecasting a potential decline to 1.1435 with a possible extension to 1.1400. After a period of range-bound trading, the Euro broke below 1.1435, reaching 1.1428. However, the analysts emphasize that downward momentum has not increased significantly. As long as the Euro remains below the 1.1490 resistance level (previously 1.1520), there remains a chance for the currency to test 1.1400, though the likelihood of a sustained move below this level is considered low based on current momentum [1].
CONCLUSION
UOB analysts see continued downside risk for the Euro against the US Dollar, with 1.1400 as a key support level. However, they do not expect a sustained break below this level due to limited downward momentum. The market implication is a cautious outlook for further Euro weakness, but with downside likely to be contained in the near term.