EUR/USD Forecast: UOB Sees Upside Bias Toward 1.1725

United Overseas Bank (UOB) Group maintains an upside bias for EUR/USD, targeting a move toward 1.1725, according to the bank’s latest technical note released on Friday. The currency pair has shown resilience in recent sessions, and UOB’s FX strategists see potential for further gains if key support levels hold.

UOB’s Technical Outlook

UOB’s technical analysis indicates that the euro is likely to trade with an upward bias against the US dollar, with the next resistance level at 1.1725. This view is based on the pair’s ability to hold above the 1.1600 support zone, which has been tested multiple times in the past week. The bank notes that a break above 1.1725 would confirm a more sustained bullish move, potentially opening the door toward the 1.1800 area.

Market Context and Implications

The euro has been supported by a combination of factors, including a softer US dollar and improving economic data from the eurozone. As of mid-2025, the European Central Bank has signaled a cautious approach to monetary policy, while the Federal Reserve has hinted at potential rate cuts later this year, which has weighed on the dollar. These dynamics have created a favorable environment for the euro, and UOB’s forecast aligns with broader market expectations.

Key Levels to Watch

Traders are closely monitoring the 1.1600 support level, which has acted as a floor for the pair in recent sessions. On the upside, the 1.1725 level is the immediate target, followed by 1.1800 if momentum persists. A daily close below 1.1600 would invalidate the current bullish bias and could lead to a retest of the 1.1500 region.

Conclusion

UOB’s outlook for EUR/USD remains constructive, with an upside bias toward 1.1725. While the pair faces near-term resistance, the overall technical picture suggests that the euro may continue to gain ground against the dollar in the coming sessions. Investors should keep an eye on upcoming economic data and central bank commentary for further direction.

FAQs

Q1: What is the current EUR/USD forecast from UOB?
UOB maintains an upside bias for EUR/USD, targeting a move toward 1.1725, with key support at 1.1600.

Q2: What are the key support and resistance levels for EUR/USD?
Support is at 1.1600, and resistance is at 1.1725, with a potential extension to 1.1800 if the bullish momentum continues.

Q3: Why is the euro expected to strengthen against the dollar?
The euro is supported by a softer US dollar and improving eurozone economic data, while the Federal Reserve’s potential rate cuts have weighed on the dollar.