The euro shows signs of establishing a higher trading range against the U.S. dollar as analysts at UOB Group predict EUR/USD to move between 1.1685 and 1.1765 in the near future.
The exchange rate reached 1.1754 before stabilizing at 1.1719. The analysts Quek Ser Leang and Peter Chia observe that the euro can continue its upward movement because overbought conditions have decreased while maintaining support above 1.1620. The technical target for the euro stands at 1.1780.
The dollar continues to weaken across the board because of President Donald Trump’s tariff policies and his proposed tax-and-spending bill which creates fiscal concerns. The euro has gained strength because of decreasing interest rate differences which resulted in the two-year EUR/USD swap spread reaching its lowest point since May.
The euro’s short-term direction will depend on upcoming U.S. economic indicators and inflation projections. Market sentiment continues to favor a stronger euro because investors are reevaluating the dollar’s position during U.S. political uncertainty.
The market monitors the 1.1765 price level with great interest. A successful breakout above this level would create opportunities for an extended price increase but analysts warn about potential overextension risks in the present market conditions.
