Euro to Dollar Tech Forecast: Buy EUR/USD at 1.1180, Target 1.16

May 17, 2025 - Written by Frank Davies

STORY LINK Euro to Dollar Tech Forecast: Buy EUR/USD at 1.1180, Target 1.16

After hitting 3-year highs above 1.1500, the Euro to Dollar exchange rate (EUR/USD) has consolidated close to 1.12 after finding fresh buying interest above 1.1000.

UBS sees scope for tentative dollar support in the short term, but is looking to sell rallies.

In this context, it recommends buying EUR/USD on dips to 1.1180 with a target of 1.1600.

UBS sees scope for the dollar to stabilise in the short term with support from optimism that trade tariff risks have peaked.

The bank also expects the Federal Reserve will be patient in the short term with nominal yields underpinning the US currency and markets have ruled out the potential for a near-term cut.

In this environment, UBS sees scope for a covering of short dollar positions which will tend to cap near-term EUR/USD support.

From a medium-term perspective, however, UBS maintains a bearish stance on the dollar.


It expects weaker US fundamentals will gradually take control, especially as it expects the Fed will resume interest rate cuts later in the year.

The bank also notes recent sharp gains for the Taiwan dollar and Korean won. It considers that these currency gains are a warning sign of sustained and wider dollar losses over the medium term.

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TAGS: Euro Dollar Forecasts