UOB currency strategists Quek Ser Leang and Lee Sue Ann have issued a cautious outlook on the euro against the US dollar as the pair slides toward the critical 1.1590 support level. The analysts warn that EUR/USD has scope to test this major technical threshold in the near term, signaling continued downside pressure on the common currency. However, they believe a sustained break below 1.1590 remains unlikely at this stage, suggesting the support may hold under current market conditions.
The assessment comes as the euro faces headwinds amid diverging monetary policy expectations between the European Central Bank and the Federal Reserve. Traders and currency desks should monitor price action closely around the 1.1590 zone, as a failure to hold could trigger additional selling pressure and stop-loss orders. Conversely, a bounce from this level may present short-term relief for euro bulls.
FXnCO Insight
Watch 1.1590 closely as a make-or-break level for EUR/USD, with positioning opportunities on either side depending on whether support holds or breaks decisively.
Source: FXStreet