EUR/USD outlook shifted to neutral, in a 1.1120/1.1290 range – UOB

The research team at UOB Group has shifted their focus on EUR/USD to neutral from bearish, expecting further consolidation between 1.1120 and 1.1290 in the next weeks.

Key Quotes

“The underlying strength in EUR exceeded our expectation as the 1.1210/15 resistance was easily taken out (overnight high of 1.1257). The subsequent sharp pullback from the top appears to have scope to extend lower but any weakness is likely limited to 1.1165/70. From here, allow for a bounce to 1.1230/35 but 1.1265 is expected to cap for a move lower to 1.1165/70”.

“The breach of 1.1240 yesterday has shifted the outlook for EUR to neutral. The lack of a sustained down-move was not surprising as we have indicated previously that any weakness is likely limited to 1.1100 (low was 1.1119 on Wednesday). We are neutral now and expect EUR to trade in a broad 1.1120/1.1290 range for the next couple of weeks”.