According to FX analysts Quek Ser Leang and Peter Chia from UOB Group, the EUR/USD currency pair could retest the 1.1750 level before a more sustained recovery occurs. However, the major support level at 1.1715 is not expected to be breached.
Short-Term (24-Hour) Outlook
- After recent volatility, EUR/USD dropped to 1.1750 before recovering to 1.1786, a 0.22% decline on the day.
- Downward momentum remains weak but persists, and a retest of 1.1750 is possible.
- Major support at 1.1715 is unlikely to be reached.
- Resistance is seen at 1.1810; a break above 1.1825 would signal that selling pressure has eased.
Medium-Term (1–3 Weeks) Outlook
- UOB shifted to a positive EUR view earlier in the week.
- On 17 September, EUR/USD peaked at 1.1918, close to the target of 1.1955, but then pulled back.
- By 18 September, analysts noted that upward momentum was fading, but the outlook remained mildly bullish as long as 1.1760 held.
- Since EUR/USD broke below 1.1760 (reaching 1.1750), momentum indicators have turned neutral to flat.
- For now, EUR/USD is expected to trade in a range between 1.1715 and 1.1855.