United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann maintain a soft outlook on the EUR/USD currency pair, highlighting that while the Euro may edge lower, the downside risk is currently capped by the 1.1500 level against the US Dollar [1]. In the latest trading session, the Euro fluctuated between 1.1530 and 1.1572, closing little changed at 1.1535, a decline of 0.07% [1]. The analysts note that 1.1520 serves as a nearby support level, with resistance seen at 1.1550 and 1.1570 [1].
Looking ahead over the next one to three weeks, UOB maintains a negative bias on the Euro, stating that a break below the 1.1500 support would open the way for a move towards 1.1445 [1]. However, they emphasize that a breach of 1.1500 is unlikely in the near term, and a move above 1.1585 would negate the current downside scenario [1].
The overall market tone remains soft for the Euro, but key support levels are expected to hold for now, limiting further downside risk unless significant technical levels are breached [1].
CONCLUSION
UOB analysts expect the Euro to remain under pressure but see strong support at 1.1500 against the US Dollar. Unless this level is broken, further downside appears limited, with resistance at 1.1550 and 1.1570. A move above 1.1585 would signal a shift away from the current negative outlook.