EUR/USD Outlook: Downside Risks Persist, Says UOB
June 2, 2026 – FXStreet
The EUR/USD currency pair continues to face downside pressure, according to a recent report by United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann. In their latest assessment, the pair’s bearish momentum appears intact, with the potential for further declines if key support levels fail to hold.
Risk Tilted to the Downside
UOB’s analysis highlights that the risk for the euro against the US dollar remains skewed to the downside. The report notes that a break below the 1.1750 level could occur as the pair struggles to gather upward momentum. However, a more significant decline to the 1.1725 level is considered unlikely for the time being.
The report elaborates, "Risk for EUR is tilted to the downside; a break below 1.1750 is not ruled out, but 1.1725 is likely out of reach for now." Traders and investors should watch closely whether the EUR/USD can maintain levels above this initial support or if it succumbs to further downside pressure.
Resistance Levels Provide Key Reference Points
On the upside, UOB identifies a strong resistance zone around the 1.1860 to 1.1875 range. As long as this resistance area remains intact, the bearish view on the euro remains valid. The report states, "While EUR has not been able to make much headway on the downside since then, we will continue to hold the same view as long as 1.1860 (‘strong resistance’ level was at 1.1875 yesterday) is not breached."
This suggests that unless EUR/USD breaks decisively above this resistance cluster, downward pressures may persist.
Market Context and Outlook
This cautious outlook for the euro comes amid mixed global economic cues and ongoing uncertainties surrounding monetary policy directions. The US dollar’s relative strength is influenced by expectations of Federal Reserve interest rate movements, while the eurozone faces its own economic challenges that weigh on the common currency’s performance.
Market observers will be closely monitoring upcoming economic data releases, central bank communications, and geopolitical developments that could influence currency volatility and trend direction.
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