UOB analysts Quek Ser Leang and Lee Sue Ann report a sharp rebound in EUR/USD, with the currency pair jumping from 1.1446 to 1.1563 during the late New York session. This rapid rise is described as excessive, but analysts see scope for further gains toward 1.1595, while noting that 1.1620 represents a strong resistance level unlikely to be breached in the near term [1]. The downward momentum has dissipated, and there is a tentative build-up in upward momentum, suggesting that EUR/USD could continue to rise within a defined range of 1.1490 to 1.1620 over the next one to three weeks [1]. However, longer-term notes indicate potential downside toward 1.1390, highlighting a cautious outlook despite the current upward bias [1]. To sustain the momentum, EUR/USD must not fall below 1.1520, with minor support identified at 1.1540 [1].
CONCLUSION
EUR/USD has rebounded sharply and is showing signs of upward momentum, but faces strong resistance at 1.1620. Analysts expect the pair to trade within a capped range, with the possibility of further gains but also cautioning about longer-term downside risks. Market participants should watch key support and resistance levels for signs of sustained movement.