EUR/USD further sideline likely near-term – UOB

EUR/USD still points to an extension of the rangebound pattern between 1.1120 and 1.1290 in the near term.

Key Quotes

“The expected pull-back moved below the 1.1220 support to touch an overnight low of 1.1188. The undertone still appears weak and as long as 1.1250/55 is intact, another leg lower to 1.1175/80 seems likely (even though at this stage, a sustained move below this level is not expected)”.

“As highlighted yesterday, despite the improvement in shortterm outlook, it is premature to expect a sustained up-move in EUR. The rapid decline from the Monday’s high of 1.1278 reinforces our current neutral view and we continue to expect sideway trading from here, likely within a 1.1120/1.1290 range”.