EUR/USD keeps the sideline theme in the near term – UOB

FX Strategists at UOB Group suggested EUR/USD should remain within the 1.0550/1.0750 range in the short-term.

Key Quotes

“The rapid decline to an overnight low of 1.0551 was unexpected. While further EUR weakness is not ruled out, downward momentum is patchy at best and 1.0550 is expected to continue to offer solid support ahead of the key level of 1.0515 (last week’s low)”.

“While downward momentum has improved with the rather sharp drop yesterday, the outlook for EUR is still viewed as neutral. That said, a move below the low end of the expected sideway consolidation range of 1.0550/1.0750 would not be surprising but EUR has to close below the recent 1.0515 low before a sustained down-move can be expected. In the meanwhile, this pair is expected to stay under pressure unless it can reclaim 1.0665/70 soon”.