EUR/USD still neutral, between 1.0490 and 1.0640 – UOB

In view of FX Strategists at UOB Group, EUR/USD’s outlook stays neutral and is likely to remain in a consolidative 1.0490-1.0640 range in the near term.

Key Quotes

“The target indicated at 1.0520 yesterday was not met as EUR rose strongly after hitting a low of 1.0523. Despite the pull-back from the 1.0615 high, the undertone is still positive and a retest of the 1.0615/20 resistance would not be surprising. At this stage, a clear break above this level is not expected”.

“The ECB inspired EUR strength resulted in quick pop higher to 1.0615. Despite the relatively strong daily closing, most indicators are generally ‘flattish’ and this pair still appears to be caught in a consolidation range. In other words, further sideways trading still seems likely albeit in a wider 1.0490/1.0640 range instead of the 1.0490/1.0590 indicated yesterday”.