Euro correction deepens yet remains controlled
The EUR/USD pair began the week under mild selling pressure, though analysts at UOB Group believe that despite the prevailing downside bias, the likelihood of a break below the key 1.1680 support level remains low in the near term. According to senior analysts Quek Ser Leang and Peter Chia, the medium‑term outlook for the Euro still carries a bearish tilt, but current momentum is not strong enough to trigger a deeper decline.
On Friday, the Euro fluctuated between 1.1713 and 1.1764, eventually closing softer at 1.1719, down 0.22%. UOB analysts note that the gradual increase in downward momentum could push the Euro slightly lower today, but:
“Given current market conditions, any decline is unlikely to threaten the major support at 1.1680.”
On the upside, resistance levels are seen at 1.1735 and 1.1750.
The Euro climbed to a high of 1.1807 late last month before entering a corrective phase. This pullback has gained some momentum, though not enough to confirm a sustained bearish trend.
Still, analysts emphasize:
“The broader bias from here is tilted to the downside toward 1.1680.”
If the Euro breaks and holds below 1.1680, a deeper pullback toward 1.1650 could unfold. The current mild downward pressure remains valid as long as the strong resistance at 1.1775 is not breached.
Overall, the Euro remains in a controlled downward trajectory, with no clear signs of a decisive break below the 1.1680 support. Short‑term traders should watch for limited downside fluctuations, while medium‑term participants should treat 1.1680 as the critical level that will determine the next directional move for EUR/USD.