EUR Downside Pressure Builds Toward Key Support Level

Market analysts at UOB are maintaining their cautious stance on EUR/USD after it closed nearly unchanged near $1.1543. The pair's downward momentum is slowing intraday, but they still see room for a move toward $1.1520. Over the broader 1-3 week view, however, UOB notes potential losses toward $1.1490 unless resistance at $1.1585 is breached.

The analysts highlighted that EUR fell more than expected on Monday and noted there was a chance for it to drop to $1.1520 before a sustained rebound could be expected. The next support level, they said, would be unlikely to come under threat.

While EUR did fall as predicted but recovered from $1.1525 to close largely unchanged at $1.1543 (-0.03%), downward momentum is starting to slow down. Based on the prevailing momentum, major support at $1.1490 remains unlikely to be threatened.