EUR/USD: M/T Bear Channel Could Target 1.05 But S/T May Bounce To +/-1.10 – BofA


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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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.

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