EUR/USD sticks to the neutral stance – UOB

FX Strategists at UOB Group noted the pair’s outlook still remains on the neutral side.

Key Quotes

“When the strong 1.0700 support was taken out in the middle of last week, we were of the view that “EUR has likely made a short-term top at 1.0825/30 last week and the current pull-back from the high appears to have room to extend lower towards 1.0615, possibly extending to 1.0575”.

“EUR touched a low of 1.0606 last Friday and with no signs of stabilization just yet, the current weakness appears to have scope to extend further towards 1.0530 with 1.0575 acting as a rather strong intervening support. That said, downward momentum is patchy at best and any weakness is likely to be ‘slow and grinding’. Resistance is at 1.0680 but only a move back above 1.0710 would indicate that a short-term low is in place”.