EUR/USD outlook shifted to neutral – UOB

FX Strategists at UOB Group have shifted their focus on EUR/USD to neutral from bearish, pointing to a 1.0550/1.0750 range in the next weeks.

Key Quotes

“The stop-loss for our bearish view at 1.0650 was just triggered at the time of writing (high of 1.0653)”.

“The bearish phase that started two weeks has ended. The current movement is viewed as the start of a consolidation phase, likely within a broad 1.0550/1.0750 range”.

“EUR rebounded strongly to touch a high of 1.0628 last Friday. The recovery appears to be running ahead of itself and a sustained up-move is not expected. That said, a retest of 1.0625/30 would not be surprising but 1.0650 is expected to cap for a pull-back to 1.0555”.

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