In the latest client note, the JP Morgan Research Team offered its outlook on the EUR/USD pair, noting that the current correction could probably a good opportunity to enter long positions. Attention now turns towards next week’s European Central Bank (ECB) monetary policy meeting.
Key quotes
“Headlines are certainly weighing on long positions.
Fast money were sellers of EURUSD.
Real money continues to buy.
Nervousness may well continue as we head into next week’s ECB meeting which will likely mean that EURUSD is now more of a two-way trade short term.
We have noted multiple times, that a pullback of 200 points or so in EURUSD has historically been a good place to add when in a trend and, while we have been running a more moderate long recently, we still believe that USD weakness will persist in the medium term, therefore the current pullback sees us looking to add.”
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