UOB Research discusses EUR/USD technical outlook and adopts a neutral bias in the near-term.
"Downward momentum is dented but still chance for EUR to test the next support at 1.0900. While we highlighted yesterday “downward momentum is dented”, the subsequent strong advance in EUR that came close to taking out the 1.1045 ‘key resistance’ came as a surprise (overnight high of 1.1037).
While the ‘key resistance’ is still intact, the price action over the past two days is enough to indicate that Tuesday’s (03 Sep) low of 1.0924 is a short-term bottom," UOB notes.
"The current price action is viewed as the early stages of a consolidation phase. In other words, EUR is expected to trade sideways from here, likely between 1.0950 and 1.1110," UOB adds.