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United Overseas Bank (UOB) analyst Quek Ser Leang noted that the EUR/USD pair closed at 1.1376 after volatile trading between 1.1361 and 1.1423. Short-term momentum is weakening, with potential for the pair to test the 1.1360 level while maintaining the critical 1.1335 support. The analysis highlights a bearish bias as technical indicators suggest downward pressure, particularly if the 1.1360 level breaks, which could trigger further declines toward 1.1335.
For traders, this development signals heightened volatility in the EUR/USD cross, especially for those holding long positions or using technical strategies. A break below 1.1335 could shift the near-term outlook to more aggressive selling, impacting related forex pairs and cross-currency trades. Broader market sentiment may also be affected if the Euro's weakness persists, influencing risk appetite and carry trades.
The key focus for the coming days will be the EUR/USD's reaction to the 1.1335 support level. A sustained close below this level could validate a bearish scenario, while a rebound above 1.1360 may stabilize the pair. Traders should monitor U.S. economic data and European Central Bank policy signals for additional directional cues.
