EUR/USD recovered some 200 pips from the lows as the Italian government was formed. But it may not be over just yet.
Here is their view, courtesy of eFXdata:
Danske Research discusses EUR/USD outlook and maintains a tactical bearish bias, expecting the pair to retest its last week’s low around 1.1510.
“We still think the bottom is ahead in the cross on USD backing from the current carry and cyclical environment for now. However, EUR/USD longs have been significantly reduced in recent months, thus leaving positioning less of an argument for further downside in itself.
In the near term, the key as to whether we will test last week’s low of 1.1510 will be the proposals due from the new Italian government,” Danske argues.
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