Euro: Medium-term downside remains in focus against US Dollar - UOB

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that the EUR/USD exchange rate has declined for five consecutive trading sessions, settling at 1.1464 after a significant 0.68% decrease. In the short term, analysts predict the pair will remain between 1.1435 and 1.1505 due to oversold conditions. However, over the next 1-3 weeks, they foresee further downside toward the 1.1435 level, with potential further extension to 1.1400 unless resistance at 1.1545 is overcome.

Yesterday, FXStreet Insights Team, a team of journalists curating market observations from experts, mentioned that their earlier expectation that the EUR would fall to 1.1520 did not pan out. They highlighted that the downward momentum might be slowing, but the EUR could still reach the 1.1520 mark. They emphasized that if the 1.1490 level is reached, it would present a major support barrier.

The current call of a weaker EUR was accurate, but they did not anticipate the substantial drop that pushed the EUR to as low as 1.1460. While a further EUR weakness is not ruled out, the oversold market conditions imply that any decline might stay within the 1.1435/1.1505 range, meaning the EUR is unlikely to break clearly below 1.1435.