EUR/USD has been on the back foot after weak German figures and upbeat US ones. What’s next?
Here is their view, courtesy of eFXdata:
TD Research discusses EUR/USD tactical outlook and advises against chasing it higher in the near-term.
“Following this week’s ISM report, we get the sense that the USD may soon regain its footing again. The failure to reclaim the 1.11 handle – yet again – is an notable feature to us. The 200dma located at 1.1160 just above should be a notable blockage – the pair has remained below it since mid-2018, and we have no reason to expect that will change in the near-term,” TD notes.
“We think this suggests that the risk/reward of chasing further upside in EURUSD from here looks fraught with risk…As a result, we believe EURUSD is in for a tactical reversal with the 1.0980 level as the next likely attractor for the pair,” TD adds.
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