The Euro (EUR) experienced a notable rebound against the US Dollar (USD) after dipping to a low of 1.1582, subsequently climbing to a high of 1.1644 during the New York session, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann [1]. The strategists maintain a cautious stance, highlighting that while the downside focus remains at 1.1570, the recent strong rebound and signs of positive divergence suggest that further losses could be limited in the near term [1].
UOB's 24-hour view notes that the EUR fell to 1.1591 on Tuesday and, after briefly trading at 1.1610 in early Asian hours, was expected to potentially test 1.1570 before rebounding. However, the currency instead rebounded strongly to 1.1644, with resistance levels identified at 1.1630 and 1.1645 [1]. The strategists now anticipate that the EUR is more likely to consolidate between 1.1600 and 1.1650 in the near term, rather than continue rising [1].
From a 1-3 week perspective, UOB had turned negative on the EUR a week prior, focusing on the 1.1570 level after the currency dropped below 1.1600. While further declines below 1.1570 are not ruled out, the strategists emphasize that the slowing bearish momentum and early signs of positive divergence indicate that the downside could be relatively limited. A breach of the 1.1665 resistance level would suggest that the 1.1570 target is out of reach [1].
No specific market reactions, analyst opinions beyond UOB's, or forward-looking statements regarding broader market implications are mentioned in the source article [1].
CONCLUSION
The Euro's recent rebound against the US Dollar has tempered immediate downside risks, with UOB strategists now expecting consolidation between 1.1600 and 1.1650. While the focus remains on the 1.1570 support, fading bearish momentum suggests losses may be limited in the near term.