Euro: Downside risk toward key supports against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang highlights that EUR/USD closed softer at 1.1376 after choppy trading between 1.1361 and 1.1423. Short-term momentum is turning lower, with scope to test 1.1360 while keeping the major 1.1335 support intact. Over 1–3 weeks, he expects range trading between 1.1335 and 1.1470, but warns that a break of the 1.1390–1.1410 zone could target 1.1210.

Euro pressured but still range bound

"24-HOUR VIEW: Yesterday, we indicated that EUR “could trade between 1.1385 and 1.1435.” We did not expect the subsequent choppy price action, as EUR fluctuated between 1.1361 and 1.1423. EUR closed on a soft note at 1.1376 (-0.39%). Downward momentum is building tentatively, and today, EUR could test and potentially break below 1.1360. Unless momentum surges sharply, any further decline is unlikely to threaten the major support at 1.1335. Resistance is at 1.1395; a breach of 1.1410 would indicate that the build-up in momentum has faded."

"1-3 WEEKS VIEW: We highlighted on Monday (29 Jun, spot at 1.1385) that the recent “weakness in EUR has stabilised,” and EUR “is likely to trade in a range between 1.1335 and 1.1470.” Our view remains unchanged."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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FXStreet Insights Team

FXStreet

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