EUR/USD neutral between 1.0420 and 1.0620 – UOB

FX Strategists at UOB Group noted EUR/USD keeps its neutral stance between 1.0420 and 1.0620 for the next weeks.

Key Quotes

“We clearly underestimated EUR strength as the target indicated at 1.0525/30 was easily surpassed with an overnight high of 1.0615. The strong daily closing suggests further upward pressure but at this stage, strong resistance can be expected at last week’s high near 1.0650”.

“EUR touched a high of 1.0615 yesterday, just a few pips below our expected sideways consolidation range of 1.0420/1.0620. While the swift and sharp rally has resulted in a positive undertone, we prefer to wait for a clear break above the major 1.0650/70 zone before shifting to a bullish stance. For the next couple of days, only a move below 1.0520 would indicate that the immediate upward pressure has eased”.