EUR/USD still neutral, well supported near 1.0500 – UOB

In opinion of FX Strategists at UOB Group, EUR/USD keeps its neutral bias unchanged although string support remains in the 1.0500 neighbourhood.

Key Quotes

“EUR rebounded strongly without threatening the major 1.0500/05 support (low of 1.0523). Despite the strong recovery from the low, the current movement is viewed as part of a broader consolidation/correction phase and not the start of a sustained up-move. That said, as long as 1.0590 is not taken out, the current EUR strength could extend higher to 1.0670/75”.

“EUR registered an ‘outside day’ yesterday and closed on a rather strong note. The recent downward pressure has eased but until there is a clear move above the strong 1.0670 resistance, another attempt to move lower towards the major 1.0505 support could not be ruled out just yet (even though the odds have decreased considerably)”.