EUR/USD on a neutral stance, could test 1.0850 – UOB

In opinion of FX Strategists at UOB Group, EUR/USD remains neutral in the near term although it could attempt a visit of the mid-1.0800s.

Key Quotes

“EUR touched a high of 1.0785 but dropped quickly from there to an overnight low of 1.0696. The down-move appears to have room to extend lower but any down-move is expected to encounter solid support at 1.0670”.

“Despite the rather rapid pull-back from a high of 1.0785 yesterday, the undertone for EUR is still positive. The post Italian referendum rally appears to have scope to extend higher but at this stage, we do not envisage a move above the major 1.0850 resistance. Overall, EUR is expected to stay supportive unless there is a move back below 1.0640”.