United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann report that the EUR/USD currency pair has entered a short-term range trading phase, fluctuating between 1.1570 and 1.1610 after a dip to 1.1565 and a rebound to 1.1608 [1]. On Tuesday, the euro fell from 1.1624 to 1.1583, settling at 1.1592, marking a daily decline of 0.21%. The currency closed largely unchanged at 1.1587, down 0.04% [1]. Analysts note that while there is room for the euro to dip below Monday’s low of 1.1573, the major support at 1.1550 is unlikely to be reached imminently. Resistance levels are identified at 1.1605 and 1.1620, with strong resistance at 1.1630 [1].
On a 1–3 week view, the rapid increase in downward momentum observed last Friday suggests further declines are possible, though the major support at 1.1550 may not be tested soon. The chance for EUR/USD to decline to 1.1550 remains unless the pair breaks above the strong resistance at 1.1630 [1].
Looking ahead, UOB maintains medium-term targets for EUR/USD at 1.1800 and 1.1850, contingent on a decisive upside break above resistance levels [1]. No specific market reactions or broader implications are discussed in the article, but the current bias remains bearish with potential for further downside unless resistance is breached [1].
CONCLUSION
The euro is trading in a narrow range against the US dollar, with downside risks persisting toward 1.1550 unless strong resistance at 1.1630 is broken. Medium-term upside targets remain in focus if a decisive break occurs. The market sentiment is slightly bearish, reflecting ongoing uncertainty in the EUR/USD outlook.