UOB’s Quek Ser Leang highlights that EUR/USD failed to sustain gains above 1.1620 and closed at 1.1590, with momentum slowing. The bank still sees an upside bias over the next 1–3 weeks, but expects firm resistance at 1.1650 and stresses that the pair must hold above 1.1555, while a broader 1.1555–1.1750 range is envisaged for early 3Q26.

Euro holds bid but faces strong ceiling

"Following the surge in EUR early yesterday, we highlighted the following when it was at 1.1600: “The advance has scope to test 1.1620. A break above this level is not ruled out, but based on the prevailing momentum, a sustained rise above this level is unlikely. The next resistance at 1.1650 is also unlikely to come under threat.” Our view was not wrong, as EUR rose to 1.1622 and then retreated to close at 1.1590 (+0.19%)."

"The pullback amid slowing momentum suggests that EUR is likely to consolidate today, probably between 1.1570 and 1.1610."

"We indicated that “while the increasing upward momentum could lead to EUR trading with an upside bias, any advance is expected to face firm resistance at 1.1650.” EUR then tested the 1.1620 level (high was 1.1622) before easing."

"There has been no further increase in momentum, but we will continue to expect EUR to trade with an upside bias as long as it holds above 1.1555 (no change in ‘strong support’ level from yesterday)."

"Price action in early 3Q26 could be contained within a 1.1555/1.1750 range; 1.1555 appears to be more vulnerable, and a break of this level could open the way for a move to the significant weekly support zone of 1.1390/1.1410. (dated 05 Jun 2026, 1.1635) Read more"

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