EUR/USD failed to top 1.20 and fell down quite quickly creating a double bottom. Can it continue to lower ground?
Here is their view, courtesy of eFXdata:
Bank of America Merrill Lynch Research discusses EUR/USD outlook and maintains its tactical bearish bias expressing that via holding a short EUR/USD position* targeting a move to 1.15.
“The main trigger for the USD rally now in progress was the failure of Eurozone data to improve after the winter.
Fundamentals are still supportive of the USD. Both data and rate differentials would suggest the USD rally can go further.
Our proprietary flows show both real money and hedge funds buying the USD across the board, and particularly against EM. And most of the US profit repatriation is still ahead according to our estimates,” BofAML argues.
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