EUR/USD stays neutral; upside remains corrective – UOB

In view of FX Strategists at UOB Group, spot keeps the neutral stance in the near term while the ongoing upside is seen as corrective.

Key Quotes

24-hour view: “Instead of retesting the 1.2365/70 resistance (as expected yesterday), EUR traded mostly sideways before ending the day largely unchanged. There is still scope for a move to 1.2365/70 but the next resistance at 1.2400 is unlikely to come into the picture. Support is at 1.2300 followed by 1.2265”.

Next 1-3 weeks: “We just turned neutral on EUR yesterday (05 Mar, spot at 1.2335) and there is no change to the view. The strong rebound from last week’s 1.2153 low is deemed as a ‘correction’ and not the start of a bullish phase. That said, the immediate bias is for a probe higher towards the top of the expected 1.2220/1.2430 consolidation range”.