United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann see EUR/USD consolidating intraday between 1.1595 and 1.1640 after a brief dip to 1.1575 failed to build downside momentum. On a 1–3 week view, a break above 1.1655 would signal that the decline from mid‑May has likely ended. Over 1–3 months, UOB warns that a break of 1.1540 could open the way toward 1.1410.

Euro-Dollar trapped between support and resistance

"24-HOUR VIEW: EUR rebounded strongly to a high of 1.1644 on Wednesday. Yesterday, when EUR was at 1.1625, we highlighted the following: “Upward momentum is building, albeit not significantly. Today, instead of continuing to rise, EUR is more likely to consolidate between 1.1600 and 1.1650.” The subsequent price movements did not turn out as expected. During the NY session, EUR dropped briefly to 1.1575 and then snapped back up to close little changed at 1.1618 (-0.08%). The brief decline did not result in any increase in downward momentum, and today, we continue to expect EUR to consolidate, likely between 1.1595 and 1.1640."

"1-3 WEEKS VIEW: We turned negative on EUR in the middle of last week (as annotated in the chart below). In our most recent narrative from two days ago (20 May, spot at 1.1610), we indicated that “the focus is now at 1.1570.” After EUR subsequently rebounded to 1.1644, we highlighted yesterday that “downward momentum has slowed, and a breach of 1.1665 (‘strong resistance’ level) would indicate that 1.1570 is out of reach.” EUR subsequently dropped briefly to a low of 1.1575 and then rebounded. Downward momentum continued to ease. From here, a breach of 1.1655 (‘strong resistance’ level previously at 1.1665) would suggest that 1.1575 is the extent of the decline in EUR that started in the middle of last week"

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)