EUR/USD neutral, focus on 1.1200 – UOB

The research team at UOB Group remains neural on EUR/USD while above the 1.1200 level.

Key Quotes

“EUR rebounded directly without testing the 1.1205/10 support (low of 1.1231). The recovery appears to have scope to extend higher but at this stage, a clear move above the strong 1.1330 resistance is not expected”.

“While the downward momentum has eased somewhat after the rebound from the low of 1.1231 yesterday, the undertone for EUR is still weak and the immediate risk is tilted to the downside”.

“However, as highlighted yesterday, only a daily closing below 1.1200 would indicate the current neutral outlook has shifted to bearish. In the meanwhile, this pair is expected to remain under pressure unless it move and stay above the 1.1330 resistance”.