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.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.