EUR/USD bullish above 1.1300 – UOB

FX Strategists at UOB Group could shift the pair’s outlook to bullish from neutral on a daily close above 1.1300.

Key Quotes

“While EUR extended its gain as expected, the up-move was short-lived and last week’s peak near 1.1265/70 was unthreatened. The recent upward pressure has eased with the quick pull-back from a high of 1.1256. The current movement is viewed as part of a consolidation phase even though the immediate bias is for a probe lower towards the bottom of the expected 1.1185/1.1245 sideway trading range”.

“The undertone for EUR is still generally positive even though as highlighted yesterday, only a clear break above 1.1300 (high in November) would indicate that this pair has reentered a bullish phase. This scenario would not be surprising as long as the key short-term support at 1.1160 is intact. A breach of 1.1160 would suggest that EUR would spend more time in a consolidation phase”.