According to United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann, the Euro (EUR) has staged a strong rebound against the US Dollar (USD), reaching around 1.1200 after a period of oversold weakness [1]. The EUR/USD pair fell sharply to a low of 1.1151 two days ago, but then rebounded strongly to a high of 1.1204, surpassing expectations for a limited range-bound movement between 1.1145 and 1.1185 [1].
The analysts note that the advance has gained momentum, and there is potential for the Euro to break above the strong resistance at 1.1220 in the near term. However, they do not expect the major resistance at 1.1270 to come into play at this stage, and it remains uncertain whether the Euro can maintain a foothold above the 1.1220 level [1]. Support levels are identified at 1.1185 and 1.1170 [1].
From a 1-3 week perspective, the analysts previously anticipated that the Euro's weakness, which began over a month ago, had not stabilized and could lead to a gradual decline toward 1.1115. However, the recent strong rebound to 1.1204 indicates that downward momentum is fading rapidly. A break above 1.1220 would signal that the month-long downtrend has stabilized, though the analysts still caution that deeply oversold conditions mean further downside cannot be fully ruled out [1].
CONCLUSION
The Euro's strong rebound against the US Dollar has challenged key resistance levels, suggesting a potential stabilization of the recent downtrend. However, analysts remain cautious, noting that while downward momentum is fading, further declines cannot be entirely dismissed. Market participants should watch the 1.1220 resistance for confirmation of a trend reversal.