EUR/USD clings to the neutral outlook – UOB

EUR/USD’s outlook should remain neutral in the near term, according to FX Strategists at UOB Group.

Key Quotes

“EUR traded sideways as expected albeit at a narrower range than anticipated. From here, the bias is on the upside but based on the lackluster momentum, any up-move is unlikely to have enough impetus to break above the major 1.1300 resistance (next resistance at 1.1330)”.

“We have held the same view that EUR is “bullish if NY closing is above 1.1300” since last Thursday, 01 Jun. The price action since then has been rather muted as EUR continues to trade with a 1.12 handle. It looks like ECB’s meeting tomorrow will decide whether there will be a sustained break above 1.1300. Based on the current assessment, this appears to be a more likely scenario, as long as the short-term key support at 1.1220 is intact”.