EUR/USD clings to the neutral bias – UOB

FX Strategists at UOB Group noted EUR/USD keeps its neutral outlook, and is likely to trade within 1.0420 and 1.0620 in the short term.

Key Quotes

“While we noted the waning downward momentum yesterday, the strong recovery that touched an overnight high of 1.0499 was unexpected. Support is at 1.0450 followed by the stronger level near 1.0420”.

“We highlighted yesterday that the condition for the current neutral outlook to shift to bearish is only upon a clear break below 1.0335/40. The sharp rebound yesterday indicates that the immediate downward pressure has eased and EUR has likely moved back into a consolidation phase and is expected to trade between 1.0420 and 1.0620 for now”.