EUR/USD neutral near term, between 1.0520 and 1.0720 – UOB

EUR/USD’s outlook stays on the neutral side for the time being and is expected to navigate within the 1.0520/10720 range, suggested FX Strategists at UOB Group.

Key Quotes

“While we indicated that EUR has made a short-term top yesterday, the sharp and rapid decline to a low of 1.0597 was unexpected. The down-move appears to be running ahead of itself but another leg lower to test last Friday’s low near 1.0565/70 would not be surprising. At this stage, a sustained move below this level is not expected”.

“The ease of which the strong 1.0615 support was taken out came as a surprise (overnight low of 1.0597). The recent build-up in upward momentum has fizzled out and EUR is deemed to have moved back into a range, likely between 1.0520 and 1.0720”.