EUR/USD rangebound between 1.0500 and 1.0715 – UOB

In view of FX Strategists at UOB Group, EUR/USD remains on a neutral outlook and is poised to trade between 1.0500 and 1.0715 in the near term.

Key Quotes

“In line with expectation, EUR dipped but the down-move was checked by the strong 1.0590 support (overnight low of 1.0587). The subsequent sharp rebound appears to have scope to extend higher but at this stage, any further up-move is expected to struggle to move beyond the strong 1.0700/05 resistance”.

“EUR dipped to low of 1.0587 yesterday but rebounded quickly. While the undertone has improved somewhat and a move above the 1.0715/20 high seen earlier this week would not be surprising, the current lackluster momentum suggests that a sustained up-move is unlikely (next resistance at 1.0765). In other words, we continue to expect range trading for now, likely between 1.0500 and 1.0715 even though the risk appears to be tilted to the upside”.