EUR/USD is on a downtrend. Where will it stop?
Here is their view, courtesy of eFXdata:
Bank of America Global Research discusses EUR/USD technical outlook and flags a scope for a bounce towards 1.10 in the near-term, while points to 1.05 as a potential medium-term target.
“EUR/USD: Bear channel and downtrend remain In our 2020 FICC Technicals year ahead report we presented a bearish EUR/USD bias. Late December and January price action put our view at risk due to some technical breaks and signals. But EUR/USD never confirmed these signals bypassing the January litmus test. Rather it resumed its decline,” BofA notes.
“In the short term, this decline is oversold and may bounce to +/-1.10. However medium term technicals suggest the French election gap will be filled (Chart 33). It is also possible a 35-year-old trend line in the 1.05s is tested. The log scale trend line was broken in September 2019,” BofA adds.
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