According to United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann, the EUR/USD currency pair slipped to 1.1742 as the US Dollar strengthened, driven by stalled US–Iran talks and weaker German sentiment [1]. The analysts observed a tentative build-up in downside momentum, with the potential for EUR/USD to retest the 1.1720 level. However, they do not expect the major support at 1.1665 to be challenged at this stage [1].
On Monday, the euro rebounded and closed at 1.1787, marking a 0.21% gain. Subsequently, the euro dropped from 1.1791 to 1.1718 before recovering to close at 1.1742, a decline of 0.38% [1]. The analysts note that for the downside momentum to be sustained, EUR/USD must remain below 1.1775, with minor resistance at 1.1760 [1].
Looking ahead, UOB maintains its view that EUR/USD is likely to trade within a defined range of 1.1665 to 1.1840 in the near term, with longer-term upside potential capped below the 1.1800 resistance level [1]. No major market-moving reactions or significant breakouts are anticipated unless the pair breaches these key support or resistance levels [1].
CONCLUSION
EUR/USD is exhibiting a mild downside bias within a well-defined trading range, influenced by external factors such as US–Iran talks and German sentiment. Analysts do not foresee a test of major support levels in the immediate term, and the pair is expected to remain range-bound unless significant momentum develops.