Last Updated on September 15, 2026 by Deon
The Euro is under selling pressure compared to the US Dollar after EUR/USD went below the important 1.1565 support level. The drop has made the pair look more negative from a point of view. UOB now thinks there is a chance the Euro could go down to 1.1490 in the few weeks.
UOB analyst Quek Ser Leang said that EUR/USD fell quickly to 1.1522 after crossing below 1.1565. Even though the pair went up from that low the rise hasn’t shown enough to say the pressure to go lower has stopped.
EUR/USD Breaks Below Key Support
The recent drop below 1.1565 is a change in the short-term technical situation. EUR/USD had found support around that level before. Uob expected a clear break to be unlikely. However stronger than expected selling pushed the Euro down to 1.1522.
The pair later went up. Ended around 1.1547 but the rise was not strong enough to stop the overall negative movement. UOB now thinks EUR/USD could test 1.1520 during the trading session before a stronger recovery happens.
1.1490 Becomes the Next Major Target
The important level for the medium-term view is now 1.1490.
According to UOB the strong move lower has made it more likely that the pair could head toward this area. The bank’s one to three week view is still negative long as EUR/USD is below 1.1600.
A drop to 1.1490 would be another move lower from current levels. Traders will watch price action near 1.1520 and 1.1490 closely to see if sellers are still in control.
If the pair reaches 1.1490 the market might see buying as traders check if the drop has gone too far.
1.1600 Caps the Recovery
Even though the short-term outlook is negative the Euro could have some rises. UOB says 1.1600 is the level for the one to three week outlook. Long as EUR/USD stays below that the overall negative view is still there.
A rise above 1.1565 would be the sign that selling pressure is easing. The next level up is about 1.1580, followed by the important 1.1600 area.
A strong move above 1.1600 would challenge the setup and suggest the recent drop might be slowing down.
What Is Causing EUR/USD Weakness?
The Euro is falling because the US Dollar is holding strong before the Federal Reserves meeting. Markets are watching US interest rate hopes, Treasury rates and the Fed’s instructions. A stronger US Dollar can add pressure on EUR/USD because the pair shows the value of the Euro against the dollar.
At the time investors are looking at the economy in the Eurozone and what the European Central Bank might do. Any signs of growth in the Eurozone or a more relaxed ECB approach could make it harder for the Euro to come back.
Technical Levels to Watch
There are price levels now that are important for EUR/USD traders.
1.1520 Support
UOB thinks the pair could test 1.1520 soon. A drop below that level could keep the selling going.
1.1490 Support
This is the target for the next few weeks that UOB has set. A move below 1.1490 could mean losses for EUR/USD.
1.1565 Resistance
This old support level is now important for any recovery. A move back above it would help reduce some of the negative pressure.
1.1600 Resistance
This is the level for the one to three week outlook. According to UOB the negative view is still valid long as this level stops recoveries.
EUR/USD Outlook
The technical view now is in favor of the sellers.
The clear drop below 1.1565 has made the downward movement stronger while the rise from 1.1522 hasn’t shown a positive change. Unless EUR/USD can get back to 1.1565 and then challenge 1.1600 moves up could keep attracting sellers.
A drop below 1.1520 would make the negative setup stronger. Put 1.1490 as the main focus. If the pair stays above 1.1600 the negative view would. Suggest that buyers are taking control.
Traders should also look at the US and Eurozone economic data because changes in interest rate hopes can quickly affect the currency pair.
Key Takeaways
EUR/USD has gone clearly below 1.1565.
The pair dropped to 1.1522 before coming up.
UOB thinks there is a chance of a near-term test of 1.1520.
The main target for lower is 1.1490.
Resistance is near 1.1565 and 1.1580.
The overall negative view is still in place while 1.1600 stops rises.
Us Dollar and interest rate hopes are still important reasons.
EUR/USD is still under pressure after a stronger than expected fall below the 1.1565 support level. Even though the Euro has come back from the low near 1.1522 UOB thinks the downward pressure has not stopped.
The 1.1520 area is the level to watch while 1.1490 is the main target for the next few weeks. On the upside a move above 1.1565 would give some help to Euro buyers. The overall negative view would stay until EUR/USD moves past the 1.1600 resistance.
For traders what happens around these levels and any changes in US interest rate hopes will probably decide the big move, in EUR/USD.
