FX Strategists at UOB Group have shifted their outlook on the pair to neutral from bullish, expecting to gravitate between 1.1250 and 1.1430 in the near term.
“In line with expectation, EUR extended its decline but the down-move was checked by the 1.1300 support. Downward pressure has eased with the quick bounce from the low of 1.1311 but it is too early to expect a sustained recovery. This pair is more likely to trade sideways at these lower levels”.
“The bullish phase that started on 28 Jun has ended when EUR dipped below the stop-loss at 1.1330. The 1.1445 peak seen last week was the extent of the bullish phase. The current movement is seen as a consolidation phase and EUR is expected to trade sideways between 1.1250 and 1.1430 for now. Looking further ahead, further EUR strength is still expected but this is likely only after the current consolidation phase is over (consolidation may last more than a week)”.