EUR/USD began the trading week with an increase to higher ground, extending its gains. Yet then, the better data from the new home sales halted the dollar decline consequently sending EUR/USD back down. What’s next?
Here is their view, courtesy of eFXnews:
Danske Bank FX Strategy Research summarized its short-term market views on EUR/USD, noticing that as the pair is approaching the 1.20 level, its recent bounce has not inched into a stretched territory yet to mark it overbought.
“EUR/USD – too early to test new year high without ECB support but range has shifted higher, with 1.20 within technical reach.
Implied EUR/USD volatility higher after break of 1.1880 in spot last week…Bounce in EUR/USD not stretched according to our short-term financial model,” Danske notes.
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