Euro: Upside bias targets 1.1725 against US Dollar – UOB

Euro (EUR) shows an upside bias targeting 1.1725 against the US Dollar (USD), according to United Overseas Bank’s Quek Ser Leang and Lee Sue Ann. EUR/USD has surged to a three-month high near 1.1680 as Dollar weakness and strong momentum support the pair, with room for further gains up to 1.1725. However, intraday moves are expected to be capped around 1.1700, with support strengthened at 1.1635 and 1.1600 in the coming days.

EUR rallied 0.89% yesterday, closing at a three-month high of 1.1677, but conditions are overbought. Further upside is unlikely beyond 1.1700. On Monday, EUR traded with an upside bias, while on Tuesday, a break and hold above 1.1615 was noted as a prerequisite for advancing toward 1.1655 and beyond. EUR broke above 1.1615 on Tuesday, closing at a three-month high of 1.1677.

EUR maintains a positive outlook as long as it stays above 1.1600. GBP/USD retreats from its May 11 high, ranging around 1.3600 in European trading. US Dollar sellers take a breather as markets assess the impact of the US Treasury buyback. EUR/USD enters a bullish consolidation phase below 1.1700, waiting for a move beyond this level before placing fresh bets.

US Jobless Claims data and Middle East headlines provide further trading impetus. Gold dips slightly through Asian trading hours, trading below $4,500 but near its highest level since early June. US Dollar stabilizes after a previous day's slump to a three-month low, prompting some profit-taking and weighing on gold. Altcoins such as Ripple, Solana, and Cardano hold steady after a bullish rebound as the broader crypto market rebounds on US Treasury bond buybacks. Ripple trades around $1.0951 following a 10% surge the previous day.