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EUR/USD had another down week, reaching 5-month lows. What’s next?

Here is their view, courtesy of eFXdata:

Bank of America Merrill Lynch Research discusses EUR/USD outlook and maintains a  tactical bearish bias,  expressing that via  holding a short EUR/USD  position targeting a move to 1.15.

“The USD rally is not done yet, in our view. We see  the considerable risk of further position liquidation potential in EURUSD  specifically, triggered by bearish price momentum.

FX/CTA investors look to be  pressing  the short side, and leveraged investors are typically flat,” BofAML argues.  

In short,  momentum has turned sharply against EURUSD, and  momentum-sensitive investors seem to be trading the theme  fairly  aggressively,” BofAML concludes.  

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