Euro: Downside risk remains in focus against US Dollar – UOB

United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann report that EUR/USD remains under downside pressure following an unexpectedly sharp decline. The currency pair dropped to a low of 1.1577 before settling down 0.58% at 1.1584 on Friday, breaking through previous range expectations. According to UOB's technical analysis, the sudden acceleration in downward momentum points toward further potential losses in the short to medium term. However, because the pair has entered oversold conditions, a quick test of the major support level at 1.1550 is deemed unlikely in the immediate session. Minor support is noted at 1.1570, while resistance is established at 1.1600 and 1.1625. For the broader 1-to-3 week horizon, UOB maintains a neutral-to-bearish bias, noting that EUR/USD must stay below the 1.1650 strong resistance level to maintain downward traction. A sustained move above 1.1625 would serve as an early signal that the current selling pressure is stabilizing.