EUR/USD consolidating between 1.0995-1.1200 – UOB

In view of the research team at UOB Group, EUR/USD remains poised to extend its neutral stance for the next 1-3 weeks.

Key Quotes

“Against our expectation, the up-move exceeded the 1.1150 resistance to hit an overnight high of 1.1164 but the rally was short-lived”.

“The rapid pull-back suggests that a temporary top is in place but any decline from here is expected to encounter solid support at 1.1070 and the 1.1040 low on Wednesday is unlikely to come under threat”.

“Time has run out for our bearish view and we are shifting to a neutral stance from here”.

“We expect to see further sideway trading, likely between 1.0995 and 1.1200 even though the near-term bias is for a stronger rebound. However, at this stage, a move above 1.1200 seems unlikely”.