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.
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.