Euro: Downside pressure targets 1.1490 against US Dollar – UOB

UOB analyst Quek Ser Leang has noted a renewed weakness in the EUR/USD exchange rate, following a more significant drop than anticipated below the 1.1565 level to 1.1522. He anticipates the possibility of the rate testing the 1.1520 mark intraday, with 1.1490 being the next key support level over the forthcoming weeks. This pessimistic outlook persists as long as the resistance level at 1.1600 hinders any rebounds, although there was an earlier expectation that a clear break above 1.1565 was improbable.

The FXStreet Insights Team, comprising journalists who curate market observations from expert analysts, reported that EUR had plummeted to 1.1568 last Friday before making a rebound. Earlier that day, when EUR hit 1.1590 in the early Asian session, they had suggested "there is scope for EUR to test the major support at 1.1565." They further clarified that "a clear break below this level appears unlikely."

Their prediction turned out to be correct, although they hadn't anticipated EUR to fall below 1.1565 and plummet to 1.1522. EUR subsequently rebounded, closing 0.44% lower at 1.1547. Despite this rebound, the steep decline has not yet stabilized. Currently, there is a potential for EUR to plummet to 1.1520 before a more robust recovery can be anticipated.

The subsequent support level at 1.1490 is expected to remain unthreatened. Resistance levels are currently observed at 1.1565, followed by 1.1580.