EUR/USD: Upside bias within capped range – UOB

UOB analysts Quek Ser Leang and Lee Sue Ann highlight a sharp EUR/USD rebound from 1.1446 to 1.1563, with scope for further gains toward 1.1595 while 1.1620 is seen as strong resistance. Over the coming one to three weeks, they see a tentative build-up in upward momentum but frames any advance as part of a 1.1490–1.1620 range, despite longer-term notes of potential downside toward 1.1390.

Euro holds gains but faces resistance

"EUR dipped to 1.1446 and then in a sudden move, surged to a high of 1.1563 in the late NY session. The sharp and rapid rise appears excessive, but EUR could continue to rise to 1.1595. "

"Downward momentum has dissipated, and there has been a tentative build-up in upward momentum."

"From here, EUR could rise further but at this stage, we view any advance as part of a 1.1490/1.1620 range."

"The major resistance at 1.1620 is not expected to come under threat."

"To keep the momentum going, EUR must not break below 1.1520, with minor support at 1.1540."

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