As the USD continues strengthening quite strongly, what are the next possible traders?
The team at Bank of America Merrill Lynch sees more dollar opportunities:
Here is their view, courtesy of eFXnews:
EUR/US has broken below the confluence of near term support at 1.1165/1.1131 (2m, old channel resistance, now support and the May-11 low), notes Bank of America Merrill Lynch.
“A break below here is needed to indicate a top and resumption of the long term bear trend. Going forward, bounces should be sold,” BofA advises.
“Next support to note is seen at 1.1053/1.1036 (old Mar/Apr highs), but these should be only a temporary stopping points ahead of 1.0535/98 (2m channel base), then 1.0462 (Mar-16 low), and then the 1.0283, long term targets,” BofA projects.
Meanwhile, BofA reiterates its bullish view on USD/JPY expressing that via maintaining a long position targeting a move to 124.59.
“Evidence continues to say that the contracting range of the past 4+ months is drawing to a conclusion and the long-term uptrend is set to resume for 124.59, ahead of 128.45. Below 118.33 invalidates this view and points to continued range-trading,” BofA adds.
“Those awaiting additional price confirmation should watch for a break 120.86 (Apr-13 high). We recommend adding to long positions on a break 120.86,” BofA advises.
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