According to UOB Group’s Quek Ser Leang, the EUR/USD currency pair has experienced a sharp rebound after a period of sideways movement, which followed a decline from its January high of 1.2078 to a mid-June low of 1.1324 [1]. The analyst notes that the rebound was anticipated due to the deeply oversold weekly slow stochastic indicator [1].
Despite the recent gains, the EUR/USD faces significant resistance at the 1.1560/1.1565 zone, which aligns with the top of the daily Ichimoku cloud and a declining weekly trendline from January’s high [1]. This resistance level was tested several times during the week but has not been breached [1]. Should the pair break and hold above this zone, there is potential for further gains toward 1.1622, which marks a minor peak from June [1].
On the downside, support is identified at 1.1470, corresponding to the current level of the 21-day EMA, and at 1.1445, the lower boundary of the daily Ichimoku cloud [1]. A break below 1.1445 would suggest that the top of the cloud may continue to act as a significant resistance barrier for an extended period [1].
No specific market reactions or forward-looking analyst opinions beyond the technical outlook were provided in the source article.
CONCLUSION
The EUR/USD pair has rebounded from recent lows but faces a critical resistance zone at 1.1560/1.1565, which could determine the sustainability of further gains. Technical indicators suggest potential for upside if this barrier is cleared, while failure to do so may keep the pair constrained below the cloud top.