Euro: Further upside toward 1.1725 against US Dollar – UOB
The Euro is gaining momentum against the US Dollar, with UOB forecasting a target of 1.1725. This bullish outlook suggests a potential breakout for the EUR/USD pair; a clean break above the current resistance could pave the way for more significant gains. The ongoing bullish sentiment is reinforced by broader market dynamics, including a bearish stance on the USD that traders are increasingly factoring in.
Where it sits in our coverage
Our consensus EUR/USD target currently stands at 1.1700 (median across 10 firms), with RBC and ING aligning closely with this upper expectation. This contrasts with firms like MUFG and Danske Bank, which have more conservative targets anchored below the consensus.
How firms align
UOB's target of 1.1725 is in line with RBC's 1.1700 and Nomura's forecast of 1.1700, which suggests a strong alignment in the bullish camp. This is echoed in our reports, particularly in /research/eurusd-ecb-rate-path-2026-08-20.
What the data shows
Recent revisions have seen UOB adjust its March 2026 target to 1.1536 from a previous level, indicating heightened optimism in the near term. Moreover, forecasts from Deutsche Bank and MUFG also reflect upward revisions, reinforcing the bullish sentiment in the market.
How firms align with this view
Aligned with the headline view
Contrary positioning
Key takeaways
- 01EUR/USD shows positive momentum, targeting 1.1725.
- 02A breakout above resistance could trigger increased buying interest.
- 03Key resistance level to watch is 1.1700.
- 04Monitor UOB's target revision for directional shifts.
Market implications
Traders should watch for the EUR/USD to approach the 1.1725 target, with confirmation needed around the 1.1700 resistance level. Economic data releases in the upcoming days could influence USD dynamics and affect this outlook.
Risks to this view
A reversal in sentiment could occur if upcoming US economic data outperforms expectations or if any geopolitical tensions lead to a flight to the USD. Specific catalysts include inflation data or Federal Reserve announcements.
Sentiment by currency
USD EUR+JPY~GBP~Composite USD score: -0.35
Sources & References
How we cover this story
Other coverage on this pair
Euro: Gentle upside against US Dollar as greenback softens - ING
USD weakness favors EUR/USD mean reversion; monitor whether softening reflects Fed pivot signals or temporary positioning relief.
Euro gains on hawkish ECB outlook despite firm US Dollar
ECB hawkish signals offset near-term USD strength; watch for EUR/USD support levels as divergence between central bank tightening cycles compresses.
Euro fades below 1.1700 as US Dollar rebounds on yields
USD strength driven by yield repricing narrows EUR/USD technicals; monitor if 1.1700 support caves to reinforce dollar momentum.