United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that EUR/USD briefly broke below 1.1180 to a 17‑month low before rebounding to close around 1.1220. Intraday, they expect consolidation inside a defined range. Over the coming 1–3 weeks, they retain a negative Euro bias, warning that while momentum is slowing, a test of 1.1145 and potentially the 1.1215 technical target on a 1–3 month view cannot be ruled out.

Euro still pressured versus Dollar

“24-HOUR VIEW: Our view of range-trading yesterday was incorrect. Instead of trading in a range, EUR dropped to a low of 1.1160 during the Asian session before recovering. EUR closed 0.28% lower at 1.1221. Despite the relatively sharp drop, there has been no clear increase in downward momentum. Today, we continue to expect EUR to trade in a range, most likely between 1.1180 and 1.1255.”

“1-3 WEEKS VIEW: We have been holding a negative EUR view since the middle of last month. Last Friday (02 Oct, spot 1.1245), we highlighted that “while EUR could continue to decline, it remains to be seen whether the current rapid pace of decline can be sustained.” We added, “the level to watch on the downside is 1.1180.” Yesterday, EUR broke below 1.1180, touching a low of 1.1160 before rebounding. Downward momentum is showing early signs of slowing, but only a breach of 1.1285 (‘strong resistance’ level previously at 1.1315) would indicate that the decline is stabilising. Until then, there is a chance for EUR to test 1.1145 next.”