Current upward bias to remain intact above the 55-day EMA - UOB Group

Improving upward momentum indicates EUR/USD could maintain its upward bias; it is premature to expect a retest of the 1.1573 high, UOB Group's FX analyst Quek Ser Leang reports.

EUR/USD is still trying to edge higher

"Our previous Chart of the Day update from about two weeks ago, 09 May 2025, when EUR/USD was at 1.1225 states: "On the daily chart, EUR/USD fell slightly below the 1.1215/1.1225 support zone yesterday (baseline of Ichimoku cloud, last September's high and a rising trendline), suggesting that 1.1573 could be an interim top. The breach of the key daily support zone could open the way for a deeper corrective pullback toward the 55-day EMA, currently at 1.1050. On the upside, 1.1400 is a strong near-term resistance level, ahead of 1.1573."

"Shortly after our update, EUR/USD fell and tested the 55-day EMA, reaching a low of 1.1064. Since the low, EUR/USD has been edging higher. The daily MACD is rising, indicating improving upward momentum, though it remains in negative territory for now. While the improving momentum suggests EUR/USD could maintain its current upward bias, it appears premature to expect a retest of 1.1573, let alone a sustained break above this level."

"The current upward bias will remain intact as long as EUR/USD holds above the 55-day EMA. In the near-term, ahead of the 55-day EMA, there is a notable support level at 1.1200. On the upside, should there be a decisive break above 1.1435, then the likelihood of EUR/USD retesting of 1.1573 will increase."