EUR/USD back to rangebound near term – UOB

According to analysts at UOB Group, EUR/USD could now attempt a consolidative pattern between 1.1050 and 1.1250 in the next weeks.

Key Quotes

“While downward momentum is not strong, the undertone is still negative and EUR is expected to continue to drift lower towards the 1.1090 support. Resistance is at 1.1155 but only a move above 1.1190 would indicate that the current mild downward pressure has eased”.

“The breach of 1.1130 yesterday indicates that the recent bullish phase has ended without meeting the 1.1280 target (high of 1.1230/35). The pull-back from the high is clearly not impulsive and at this stage, there is no reason to expect a sustained down-move. In other words, the outlook for EUR is neutral and we expect to see range trading, likely within a 1.1020/1.1250 range.