EUR/USD neutral, could test the mid-1.0800s – UOB

FX Strategists at UOB Group believe EUR/USD could visit the 1.0850 area in the next 1-3 week.

Key Quotes

“We indicated yesterday that despite the strong downward pressure, we were reluctant to adopt a bearish stance as we view 1.0455/60 (low in 2015) as a very strong support and do not envisage a clear break below this level”.

“Within a span of less than 24 hours, EUR surged higher by about 300 pips and the pressure has reversed quickly to the upside”.

“That said, we see 1.0850 as a very strong resistance and at this stage, do not expect a sustained move above this level. In other words, we continue to hold a neutral view even though there is room for the current strong rebound to extend further towards 1.0850”.