EUR/USD has been under some downward pressure. What is the outlook for the pair?
Here is their view, courtesy of eFXdata:
TD Research adopts a tactical bearish bias on EUR/USD targeting a move towards 1.17-1.16. TD will be looking to buy the dips round these levels strategically.
“Markets have started to roll over, revealing some excess froth priced into risk assets./A drawdown is a tide that lifts all boats, so the USD is the natural benefactor to any wobbles. It’s probably not a surprise that the BDXY has rallied for the past three sessions. Still, these moves aren’t the start of the USD bull market revival. We think it’s worth 1-2% on the broad USD, with a higher beta to EMFX and some high beta currencies. For the EUR, that argues for a washout towards 1.16-1.17,” TD notes.
“While there are many factors that one can cherry-pick to explain this reversal’s start, it’s likely a combination of things that have worked in concert. The list includes overpopulated themes, growth and price action gaps, US polling shifts, and seasonality,” TD adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.
Share
