The world’s most popular currency pair dropped from the highs but stabilized. Is it ready to rally?
Here is their view, courtesy of eFXdata:
MUFG Research discusses EUR/USD outlook and adopts a tactical bullish bias, expecting the pair to trade upward in 1.1350-1.1650 range in the near-term.
“The euro is once again attempting to break out to the upside from its recent 1.1200 to 1.1500 trading range which has been in place since October. The next key resistance level beyond is provided by the 200-day moving average at 1.1563. The recent dovish shift in Fed policy is tilting risks to the upside for EUR/USD,” MUFG notes.
“Still with the euro-zone economy slowing and the Italian economy haven fallen into recession, it should continue to place a dampener on upside potential for EUR/USD. The main downside risk for the euro is posed by ongoing Brexit developments. The UK parliament voted to leave the threat of “No Deal” on the table,” MUFG adds.
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