EUR/USD rangebound between 1.0500 and 1.0715 – UOB

In opinion of FX strategists at UOB Group, EUR/USD keeps the neutral perspective, likely to trade between 1.05 and 1.0715 in the near term.

Key Quotes

“The unexpected sharp drop in EUR appears to have room to extend lower but oversold conditions suggest that any decline would likely struggle to move below the strong support at 1.0590 (which is followed closely by another significant level near 1.0570). A move above 1.0670 would indicate that the immediate downward pressure has eased”.

“Instead of extending higher, EUR dropped sharply yesterday from a high of 1.0715. The short-term undertone has shifted from positive to neutral and this pair has likely moved back into a consolidation phase. In other words, we expect range trading for now, likely between 1.0500 and 1.0715”.