EUR/USD sticks to the neutral stance – UOB

FX Strategists at UOB Group noted EUR/USD remains neutral, likely between 1.0555/1.0700 in the near term.

Key Quotes

“Despite trading mostly sideways on Friday, the undertone is negative and EUR is expected to drift lower to test last week’s low near 1.0565/70. At this stage, a sustained move below this level is not expected”.

“The sharp and rapid pull-back in EUR last Thursday was unexpected. We previously held the view that the rebound from last week’s 1.0568 low has scope to extend to 1.0750 but this seems unlikely now. This pair has likely moved into a consolidation phase and is expected to trade between 1.0555 and 1.0700 for now”.