EUR/USD back to neutral stance – UOB

In the opinion of analysts at UOB Group, the pair’s outlook has shifted to neutral from bearish for the next 1-3 weeks.

Key Quotes

“Expectation for further EUR weakness was wrong as the break of the 1.1255 resistance led to a rapid rise to an overnight high 1.1297. The up-move is viewed as part of a broader consolidation and not the start of a major up-move”.

“The expectation for EUR to move clearly below the 1.1195/1.1200 support was proven wrong quickly as EUR surged above the 1.1290 stop-loss in overnight trading. The outlook for EUR has shifted back to neutral and only a clear break out of the expected 1.1195/1.1330 range would indicate the start of a sustained directional move”.