EUR/USD neutral near term, between 1.1150/1.1330 – UOB

The research team at UOB Group has noted the neutral bias on EUR/USD, likely to keep the consolidative theme between 1.1150 and 1.1330 in the next weeks.

Key Quotes

“While the actual range of 1.1200/1.1259 was reasonably close to our expected sideway trading range of 1.1205/1.1270, the weak daily closing has resulted in a negative undertone for EUR”.

“A clear break below 1.1200 could lead to further weakness but 1.1150 is a major support and this level is unlikely to be seriously threatened. Resistance is at 1.1230 followed by 1.1260/65 which is acting as a very strong resistance now”.

“Despite the generally strong USD performance elsewhere, EUR traded within a relatively narrow range of 1.1200/1.1259 yesterday. At this stage, there is no reason to change our neutral view even though the bias is for EUR to move lower to test 1.1150 first (the low end of our expected 1.1150/1.1330 sideway trading range)”.