UOB Group strategists Quek Ser Leang and Lee Sue Ann are flagging downside risks for the euro against the US dollar as the pair hovers near the 1.16 level. While intraday momentum indicators show signs of flattening, suggesting near-term consolidation, the broader directional bias remains tilted toward the downside. The analysts warn that key support levels could come under pressure if selling momentum accelerates.
The technical outlook arrives as traders navigate a challenging environment for the single currency, with the euro struggling to gain traction against a resilient greenback. Currency traders and forex brokers should prepare for potential volatility as EUR/USD tests critical technical thresholds around current levels. Any breakdown below 1.16 could trigger stops and accelerate declines toward deeper support zones.
FXnCO Insight
Traders should monitor 1.16 closely as a breakdown could trigger cascading stop losses and create short-term shorting opportunities in EUR/USD.
Source: FXStreet