UOB strategists see limited downside for the euro after a rebound to 1.1644 tempered bearish momentum near key support levels.
The euro recovered to 1.1644 against the US dollar after dipping to 1.1582, easing concerns over a break below the 1.1570 support level. Strategists noted slowing bearish momentum and positive divergence, suggesting downside risks may be limited in the near term.
Earlier projections targeted 1.1570 as a key downside focus, but the rebound reduced immediate selling pressure. The pair is now expected to consolidate between 1.1600 and 1.1650, with momentum indicators showing a pause in the recent decline.
The shift follows a week of cautious sentiment, though strategists maintain a guarded outlook despite the rebound. No significant market reaction was reported in the immediate aftermath.