EUR/USD: the euro remains neutral and rebounds will continue to be corrective (UOB)

UOB believes that the EUR/USD's rebounds will likely remain limited.

"The recovery of the EUR/USD was stronger than expected, with the break above 1.2320 and a peak at 1.2365. The rebound seems stretched, but a new test of the 1.2365/70 area would not be surprising.

However, the next resistance level at 1.2400 should not be seriously threatened.

Support comes at 1.2300, but only a move below 1.2275 would indicate that bullish pressures have eased."