FXStreet (Edinburgh) - The single currency is managing to keep the trade above the 1.09 handle vs. the greenback ahead of the key ADP report due later. “In our view, there is one argument for a lower EUR/USD, which is relative rates. However, there are several arguments for a higher EUR/USD: valuation, external balances, cyclical, positioning, terms of trade and hedging flows. Near term, we expect EUR/USD to range trade between 1.07-1.10 but the scene is set for a move higher in the medium term”, suggested Senior Analyst at Danske Bank Sverre Holbek. In addition, the research team at UOB Group noted “There is not much to add as EUR continues to trade quietly albeit with an improving undertone. At this stage, only a strong and impulsive break above 1.0995/00 or below 1.0775/80 would indicate the start of a sustained directional move. In the meanwhile, we continue to hold a neutral view”. For more information, read our latest forex news.