Long-term support line is limiting downside risk on the EUR/INR pair, as analysts at ANZ Bank note.
Key quotes
“Our view of a significantly weaker EUR points to a fall in EUR/INR. However, if USD/INR does hit a new record high of 80.0 in Q3 as we expect, any fall in EUR/INR in the next 3-6 months will be modest.”
“High forward points favour sellers of EUR/INR, who could lock in the 84 level in forwards longer than three months.”
“For buyers, we are looking at a modest downside to 80.0 but it will head lower if EUR/USD breaks below par in late 2020.”
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