In recent trading sessions, the EUR/USD currency pair has seen notable fluctuations, closing at 1.1742. The dollar’s strength has been influenced by stalled discussions between the United States and Iran, coupled with a decline in German economic sentiment. Analysts from United Overseas Bank, Quek Ser Leang and Lee Sue Ann, indicate that there is a tentative build-up in downside momentum for the euro, suggesting a potential retest of 1.1720. However, they maintain that the major support level at 1.1665 is unlikely to be breached at this time. The broader trading range is expected to hold between 1.1665 and 1.1840, with the euro facing resistance below 1.1800.
In the near term, the euro experienced a rebound on Monday, closing at 1.1787, marking a 0.21% increase. Earlier in the day, when the euro was priced at 1.1785, analysts noted that while a further rebound was possible, any upward movement would likely be capped around 1.1805 due to the lack of strong upward momentum. This forecast proved accurate, as the euro subsequently fell from a peak of 1.1791 to a low of 1.1718 before stabilizing back at 1.1742, resulting in a 0.38% decline.
The analysts highlighted a cautious increase in downward momentum, which may lead to a retest of the 1.1720 level. Although a drop below this threshold is possible, it is not anticipated that the significant support at 1.1665 will be tested in the near future. To maintain this tentative downward momentum, the euro needs to remain below 1.1775, with minor resistance expected at 1.1760.
Looking ahead, the view remains consistent with earlier assessments that the euro is likely to continue trading within the established range of 1.1665 to 1.1840 for the foreseeable future.
