The Euro (EUR) is expected to continue trading between 1.1625 and 1.1665. Analysts from UOB Group suggest that if the EUR drops below 1.1615, it would indicate that the current advance in EUR is not continuing.
Recently, when the EUR was at 1.1640, the analysts predicted a range-trading phase between 1.1625 and 1.1670, which proved accurate as the EUR traded between 1.1627 and 1.1671. The EUR closed slightly lower by 0.01% at 1.1642, with momentum indicators remaining neutral.
Over the next 1-3 weeks, EUR strength was initially anticipated, with a potential move towards levels of 1.1695 and potentially 1.1730. However, upward momentum has started to diminish. Should the EUR fall below 1.1615, it would suggest that the upward trajectory that began late last month has stalled.
These insights are provided by the FXStreet Insights Team, bringing together market observations from various experts. The content involves commercial notes and insights from both internal and external analysts.
The Euro’s upward momentum appears to be stalling, suggesting we are entering a period of sideways trading. For the near term, we expect the EUR/USD pair to remain contained within a tight range of approximately 1.1625 and 1.1665. The strong advance that began in late November 2025 has not been able to push past key resistance levels.
This slowdown is reinforced by recent economic data, which presents a conflicting picture for the currency pair. The latest US Non-Farm Payrolls report from December 5th showed a robust addition of 210,000 jobs, strengthening the case for the US dollar. Meanwhile, the Eurozone’s November flash CPI was slightly higher than expected at 2.7%, but recent ECB commentary has emphasized a cautious “wait-and-see” approach to policy.
For derivative traders, this suggests that selling volatility could be a viable strategy in the coming days. Options strategies like short straddles or iron condors with strikes centered around the 1.1650 level may be attractive. These positions benefit from the currency pair remaining stable and from the effects of time decay.
We must keep a close watch on the 1.1615 support level, as a decisive break below it would signal the end of the upward trend that started after the Fed’s policy pivot back in mid-2025. If this level is breached, it would be a trigger to close any neutral positions and consider buying puts. Such a move would indicate that the recent Euro strength has fully exhausted itself.
