EUR/USD Eyes 1.1800 Target as Euro Continues to Gain Momentum

Singapore-based United Overseas Bank (UOB) Group's foreign exchange strategists believe that the euro has room to appreciate toward 1.1800 against the US dollar, building on recent upward momentum.

The technical analysis from UOB indicates an upward bias for the EUR/USD pair, with a target set at 1.1800. To confirm this bullish momentum, the pair must first break and hold above the 1.1700 level.

The euro has been gaining ground in recent weeks due to a combination of factors, including a more hawkish stance from the European Central Bank (ECB) and improving economic data from the eurozone.

The US dollar has faced pressure from expectations that the Federal Reserve may be nearing the end of its tightening cycle. Major banks see further upside for the euro, citing narrowing interest rate differentials between the US and the eurozone, as well as a potential recovery in European manufacturing and services activity.