EUR/USD back to neutral from bullish – UOB

Following the ongoing drop, analysts at UOB Group have turned neutral on EUR/USD from bullish.

Key Quotes

“The sharp drop from the high of 1.1415 yesterday was clearly unexpected and the 1.1300 stop-loss was just breached at the time of writing”.

“The bullish phase that started earlier this week has ended and the outlook for EUR from here is deemed as neutral”.

“That said, the current pullback appears to have scope to extend lower to 1.1240 but at this stage, a sustained move below this level is not expected (next support at 1.1200). The 1.1415 peak is acting as a major resistance now”.