EUR/USD: Bias remains tilted to the downside – UOB Group

FXStreet Insights Team FXStreet

EUR is likely to edge lower, but any decline is unlikely to reach the major support at 1.1650. In the longer run, bias remains tilted to the downside, but EUR must close below 1.1680 before a move toward 1.1650 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR is likely to edge lower

24-HOUR VIEW: "Following EUR’s price action on Monday, we indicated yesterday that EUR 'appears to have entered a range-trading phase, and it is likely to trade between 1.1695 and 1.1750'. EUR subsequently rose to 1.1742, dropped back down to 1.1683 before closing on a soft note at 1.1687 (-0.28%). The slight increase in downward momentum suggests EUR is likely to edge lower today, but any decline is unlikely to reach the major support at 1.1650. Note that there is another support level at 1.1680. On the upside, resistance levels are at 1.1715 and 1.1730."

1-3 WEEKS VIEW: "Two days ago (05 Jan, spot at 1.1715), we highlighted that 'the bias is tilted to the downside toward 1.1680'. After EUR dropped to 1.1658 and rebounded strongly, we indicated yesterday (06 Jan, spot at 1.1715) that 'while the bias remains tilted to the downside, EUR must close below 1.1680 before a move toward 1.1650 can be expected'. We will continue to hold the same view as long as 1.1755 (‘strong resistance’ level was at 1.1765 yesterday) is not breached."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD appears well offered near 1.3160

GBP/USD builds on Tuesday’s losses, although it now manages to pick up some pace and bounce off earlier multi-month troughs near 1.3140. The Greenback’s solid performance and continued political turmoil in the UK are keeping Cable under persistent pressure, with little sign of a meaningful recovery.

EUR/USD trims losses, hovers around 1.1350

EUR/USD now regains some composure and rebounds to the 1.1350 zone on Wednesday, partially reversing the prior pullback to fresh yearly lows near 1.1320. Meanwhile, spot remains on the back foot as the US Dollar continues to draw support from hawkish Fed expectations and uncertainty over the outcome of US-Iran peace negotiations.

Gold pressured near fresh 2026 lows

Gold accelerates its decline and gyrates around the key $4,000 mark per troy ounce on Wednesday, its lowest level since November 2025. In the meantime, tighter-for-longer Fed expectations and a broadly firmer US Dollar continue to weigh on the yellow metal, while uncertainty surrounding a potential US-Iran peace agreement has done little to revive demand for the safe haven space.

Crypto Today: Bitcoin, Ethereum, XRP trade under pressure as September Fed rate-hike odds increase

Bitcoin is trading between $62,000 and $63,000 at the time of writing on Wednesday, weighed down by headwinds stemming from macroeconomic uncertainty and geopolitical tensions in the Middle East.

5.90% to 5.45%: Why the Pound ignored the bond market’s relief rally

Keir Starmer resigned on Monday, and the Pound barely moved. That near-silence is the tell. Sterling's real driver these past four months has not been the prime minister, nor the left-leaning frontrunner lining up to replace him, but the long end of the gilt curve, which answers to a force no British politician controls.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.