According to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann, the EUR/USD currency pair has slipped to a two-week low near 1.1680 amid weakening Euro area activity, but the short-term downside momentum is beginning to slow [1]. The pair tested the 1.1685 support level, rebounded to 1.1716, and then dropped to a low of 1.1668 during the New York session, ultimately closing slightly lower by 0.17% at 1.1683 [1].
UOB analysts highlight that the key support level at 1.1665 is now under scrutiny. They note that while there is no sign of a recovery yet, the downward momentum is not strong enough to suggest a continued decline at this stage. Instead, they expect EUR/USD to trade in a range between 1.1665 and 1.1715 intraday [1]. For the 1-3 week outlook, the analysts maintain that EUR/USD is likely to remain range-bound, with a narrower expected range of 1.1665 to 1.1795 containing price movements for now [1].
A sustained break below the 1.1665 support level is required to open the way for a move down to 1.1625, while resistance is seen at 1.1715 and 1.1750 [1]. The likelihood of a clear break below 1.1665 persists as long as the 'strong resistance' at 1.1750 is not breached [1].
No specific market reactions or analyst opinions beyond the UOB strategists' technical outlook are discussed in the article [1].
CONCLUSION
EUR/USD is currently testing a critical support level at 1.1665, with UOB analysts expecting range-bound trading unless this level is decisively broken. Downward momentum is slowing, and a move to 1.1625 would require a sustained break below 1.1665. Market participants are advised to watch these technical levels closely for further direction.