EUR/USD still neutral, eyes on 1.1300 – UOB

FX Strategists at UOB Group noted the pair should shift to bullish on a close above the key barrier at 1.1300.

Key Quotes

“Expectation for EUR to extend its gain was proven wrong as the major 1.1300 resistance was unthreatened (high of 1.1283). The quick drop to a low of 1.1233 and the subsequent sideway trade suggests that the current price action is part of a consolidation phase. Further consolidation seems likely for today even though this pair is expected to trade at a slightly lower range of 1.1225/1.1280”.

“There is not much to add as EUR traded in a relatively quiet manner yesterday. The undertone still appears to be positive but as highlighted in recent updates, this pair has to register a NY closing above 1.1300 to indicate that it has re-entered a bullish phase. This scenario would not be surprising as long as the key short-term support at 1.1210 is intact”.