EUR/USD keeps the neutral tone, stays sidelined – UOB

The pair’s outlook remains neutral and is expected to gravitate within a consolidative theme in the near term, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “The anticipated EUR strength fell short of the ‘target’ indicated at 1.2420 yesterday. Upward momentum has eased with the rapid pullback from a high of 1.2412 and EUR has likely moved into a consolidation phase. In other words, we expect EUR to trade sideways from here, likely within a 1.2335/1.2400 range”.

Next 1-3 weeks: “While the strong 1.2420 resistance is still intact, the strong daily closing in NY is enough to indicate that the recent mild downward pressure has eased. However, there is no change to the neutral outlook but EUR has likely moved into a consolidation phase (we previously expected a test of the solid support at 1.2220). In other words, we expect EUR to trade sideways from here, likely within a broad 1.2280/1.2500 range”.