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EUR/USD: FX/CTA Pressing To Downside & Leveraged Flat; Staying Short – BofAML

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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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.