EUR/USD neutral, could visit 1.0770/1.0825 – UOB

EUR/USD’s stance remains neutral in the near term, although it could attempt a visit to the 1.0770 area ahead of 1.0825, noted FX Strategists at UOB Group.

Key Quotes

“The anticipated EUR strength exceeded our expectation by easily taking out the strong 1.0700 resistance to hit an overnight high of 1.0736. While the up-move appears to be running ahead of itself, solid upward momentum suggests that extension towards 1.0770 would not be surprising”.

“The ease of which 1.0700 was taken out was unexpected. This coupled with the strong daily closing clearly indicates that the immediate pressure is on the upside. All in, as long as 1.0635 is intact in the next few days, there is a good chance that the current EUR strength could extend higher to 1.0770, with lower odds for extension to 1.0825”.