EUR/USD sticks to the neutral perspective – UOB

The pair is seen in a consolidative mode between 1.0800 and 1.0950 in the near term, suggested FX Strategists at UOB Group.

Key Quotes

“EUR dipped briefly to hit a low of 1.0838 before rebounding quickly. As noted yesterday, oversold conditions coupled with waning momentum suggest limited downside risk for now. All in, this pair is likely to consolidate further and trade sideways at these lower levels, likely not moving much out of the 1.0838/1.0893 range seen yesterday”.

“There is not much to add; we continue to hold the view that EUR has made a short-term top at 1.1023 earlier this week. The current movement is viewed as the early stages of a consolidation phase, likely between 1.0800 and 1.0950”.