EUR/USD: Modest upside with key support in focus – UOB

United Overseas Bank’s (UOB) strategists Quek Ser Leang and Lee Sue Ann highlight that EUR/USD failed to break clearly above 1.1825 and has slipped into consolidation after a sharp pullback from 1.1823 to 1.1766. They retain a mildly positive 1–3 week bias, eyeing potential gains toward 1.1850, but stress that a break below 1.1735 would signal the Euro is no longer advancing.

Consolidation but positive bias intact

"We have held a positive EUR stance since late last week. In our most recent narrative from two days ago (15 Apr, spot at 1.1800), we highlighted the following: “Upward momentum remains modest for now. That said, EUR could continue to rise, but it remains to be seen if 1.1850 is within reach.”. Yesterday, EUR rose to a fresh high of 1.1823 and then pulled back."

"The current price movements are likely part of a consolidation phase. Today, we expect EUR to trade between 1.1760 and 1.1805."

"Upward momentum has eased somewhat but only a breach of 1.1735 (no change in ‘strong support’ level from yesterday) would indicate that EUR is not rising further."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)