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

FXStreet Insights Team FXStreet

UOB’s Quek Ser Leang and Lee Sue Ann see EUR/USD consolidating near 1.16 with momentum indicators flattening intraday, but the broader bias tilting lower. A break below 1.1590 would raise the risk of a move toward 1.1555, while over the coming months price action is expected within a 1.1555–1.1750 range, with 1.1555 viewed as more vulnerable.

Key 1.1590 and 1.1555 supports in focus

"24-HOUR VIEW: EUR declined to a low of 1.1594 two days ago. Yesterday, when EUR was at 1.1605, we indicated that “downward momentum has increased, albeit not significantly,” and we were of the view that EUR “could test the major support at 1.1590 before the risk of rebound increases.” EUR dipped to 1.1592 during the Asian session and then rebounded strongly to a high of 1.1645 before retreating to close at 1.1609 (+0.12%). Momentum indicators are turning flat, and today, EUR could trade in a range between 1.1590 and 1.1640."

"1-3 WEEKS VIEW: After holding the same view since last Monday (25 May, spot at 1.1620), wherein “EUR is neutral now, and it is likely to trade between 1.1590 and 1.1685,” we indicated yesterday (04 Jun, spot at 1.1605) that “downward momentum is increasing, and if EUR breaks and holds below 1.1590, it would increase the risk of a decline toward the significant support at 1.1555.” We added, “the likelihood of EUR breaking clearly below 1.1590 will remain intact as long as 1.1655 (‘strong resistance’ level) is not breached.” 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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