What is the outlook for EURUSD in the medium term?
Here is their view, courtesy of eFXdata:
CitiFX Technicals outlines several cross-market price developments to maintain their bullish bias on spot in the medium term.
“EURUSD posted a bullish outside week last Friday, akin to what happened in the week ending 27 Nov. 2020. Subsequent price action saw the EUR enjoy a rally of almost 400 points,” Citi notes.
“US 10 year real yields are falling as nominal yields continue to follow a similar path to that seen in 1993- 1994 and 1998-2000 (suggesting that we now see a period of range trading).
The US-Germany 10 year yield spread has broken decisively below the 55-day MA with a wide gap to the 200 day MA and trend line support at 153-156 bps. The current spread hovers at 178 bps,” Citi adds.
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