Euro at Risk of Further Decline Amid Oil Price and US Data Concerns

Financial analysts at ING and JPMorgan are pointing to potential risks that could push down the Euro against the US Dollar. Oil prices taking another sharp leg higher and positive US data surprises in the coming weeks could quickly drive EUR/USD below its current level of 1.1393, which is still slightly up from last week's low.

ING views the next key support area for EUR/USD as 1.1320-1.1330, while JPMorgan sees signs that the Dollar's advance is becoming stretched and favors buying the Euro now due to overbought territory. The DXY (Dollar Index) closed above 70, a level typically indicating an overextended position.

JPMorgan notes that its preference for buying the Euro reflects a short-term momentum signal rather than any guarantee of a Dollar peak. This cautious tone contrasts with ING's slightly more bearish outlook, which sees downside risks persisting despite not predicting new lows immediately.