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UOB analysts Quek Ser Leang and Lee Sue Ann note that the EUR/USD pair has retreated after testing the 1.1460 level, with growing downward momentum. Despite this, they argue that the key support at 1.1360 remains difficult to breach in the near term. The pair anticipates EUR/USD to trade within a 1.1360–1.1450 range over the next 1–3 weeks, emphasizing the importance of monitoring this range for potential breakouts or breakdowns.
This analysis is critical for forex traders as it provides a clear framework for short-term positioning. The defined range allows traders to set stop-loss orders and profit targets around the identified support and resistance levels. Additionally, the focus on downside risks highlights the need for caution, particularly in a market environment where the Federal Reserve’s policy stance and European Central Bank’s actions could influence the EUR/USD trajectory.
For investors in the Gulf and broader MENA region, the EUR/USD range-bound forecast offers strategic entry points for carry trades or hedging against currency fluctuations. Traders should closely watch the Fed’s upcoming policy decisions and any shifts in ECB guidance, as these could either reinforce the current range or trigger a breakout. The next key event to monitor is the U.S. non-farm payrolls report, which may provide further clarity on Fed rate expectations.
