EUR/USD bullish above 1.0840 – UOB

In opinion of FX Strategists at UOB Group, the pair’s outlook should shift to bullish from the current neutral stance on a close above 1.0840.

Key Quotes

“Instead of extending its gains as expected, EUR dropped back quickly to test the strong support at 1.0730 (overnight low of 1.0729). The undertone is generally positive but a retest of 1.0730 would not be surprising. However, the next support at 1.0700 is likely strong enough to hold any intraday pull-back”.

“As noted yesterday, unless there is a clear move back below 1.0730 within these few days, the undertone for EUR is viewed as positive (overnight low has been 1.0729). However, only a daily closing above 1.0840 would indicate that this pair has entered a bullish phase (with an immediate target of 1.0955)”.