EUR/USD remains neutral, focused on 1.1297 – UOB

The current stance on the pair remains neutral, while a sustained break below 1.1297 seems unlikely, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Instead of extending its rebound (as expected yesterday), EUR traded sideways within a narrow range of 1.1359/1.1416. Indicators have turned ‘flat’ and further sideway trading is expected for today, albeit likely at a lower range of 1.1340/1.1405”.

Next 1-3 weeks: “EUR traded in a muted manner yesterday and held within last Friday’s range (an ‘inside day’). The price action offers no fresh clue and while the ‘negative’ phase in EUR that started more than a week ago is still deemed as intact, we continue to see low risk for a sustained break of the next support at 1.1297 (year-to-date low). That said, only a move above the 1.1450 ‘key resistance’ (no change in level) would indicate that the ‘negative’ phase has ended and a short-term bottom is in place. Meanwhile, EUR could continue to consolidate and trade sideways at these lower levels for the next couple of days”.