EUR/USD neutral, rangebound between 1.0715/1.0905 – UOB

The outlook on EUR/USD remains neutral in the near term, likely to gravitate between 1.0715 and 1.0905.

Key Quotes

“While we were of the view that a short-term top was in place, the pace and depth of the pull-back was unexpected. While oversold, the current decline in EUR appears to have scope to extend lower to 1.0780 (next support is at 1.0760). Resistance is at 1.0840 and yesterday’s high near 1.0870/75 is likely strong enough to cap any intraday rebound”.

“The call to wait for a daily closing above 1.0870/75 before turning bullish was right as EUR unexpectedly dropped sharply to hit an overnight low 1.0796. The 1.0904 high registered on Monday is viewed as a short-term top and EUR has likely moved into a consolidation phase even though the immediate bias is for probe lower towards the bottom of the expected 1.0715/1.0905 range”.