The Euro (EUR) is currently under pressure, with the EUR/USD exchange rate testing the support level at **1.1635**. Analysts from UOB Group, including **Quek Ser Leang** and **Peter Chia**, indicate that while a more sustained recovery may be on the horizon, the overall bias for the Euro remains negative in the near term. The question now is whether the currency will dip further to test the next support level at **1.1615**.
Recent market movements have shown a persistent decline in the Euro, reflecting oversold conditions. In the last trading session, the Euro reached a low of **1.1642** before closing slightly higher at **1.1658**. This pattern suggests that while there is some upward momentum, the **1.1635** level could be pivotal in determining the Euro’s future trajectory.
Market Analysis and Support Levels
The analysis provided by UOB Group highlights that the **24-hour view** initially anticipated a decline for the Euro but did not expect it to breach the major support at **1.1650**. The currency’s behavior has validated this forecast as it dipped to **1.1671** earlier, demonstrating mild downward momentum. Nevertheless, analysts maintain that the Euro could still test **1.1635** before a potential recovery becomes more evident.
Looking further ahead, the **1-3 week outlook** remains cautious. UOB Group’s analysts turned negative on the Euro at the start of the week, suggesting that the recent price action indicates possible further declines. They noted that a breach of the **1.1710** level would be necessary to signal a shift in this downward bias. Currently, the **1.1650** support appears to be a critical threshold that the Euro has yet to decisively overcome.
Future Predictions and Economic Context
The broader economic context for the Euro remains challenging. Although downward momentum has begun to ease, the analysts emphasize that the Euro must remain below **1.1690** to sustain this trend. Resistance is noted at **1.1675**, which could hinder any potential recovery attempts.
In light of these developments, traders and investors are advised to keep a close watch on the Euro’s performance against the US Dollar, particularly as economic indicators from the United States may influence market sentiment. The upcoming data releases will be pivotal in shaping expectations for both currencies.
As the situation evolves, the Euro’s ability to recover will depend on its performance against these established support and resistance levels. The next few trading days will be crucial in determining whether the Euro can consolidate its position or if it will continue to face downward pressure.
