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UOB analysts Quek Ser Leang and Lee Sue Ann highlight that the EUR/USD pair is currently consolidating between 1.1505 and 1.1555 following a sharp decline last week. This short-term consolidation suggests a potential continuation of the broader downtrend, with key support levels below 1.1500 under scrutiny. The pair’s analysis points to a bearish outlook if the 1.1450 level is breached, as this could trigger further declines toward 1.1350. The EUR/USD pair has been under pressure due to divergent monetary policies between the European Central Bank (ECB) and the Federal Reserve, with the latter maintaining a hawkish stance. This dynamic has kept the dollar strong against the euro, impacting cross-currency trades and carry trades involving the euro. Traders are advised to monitor the 1.1450 level as a critical technical threshold, with a breakdown signaling deeper losses. The ECB’s upcoming policy decisions and U.S. inflation data will also influence near-term price action, making this a key focus for forex markets.
