Home EUR/USD: Trapped In A Range Around 1.13 With A Downside Tilt On a 3-Month Horizon – Danske
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EUR/USD: Trapped In A Range Around 1.13 With A Downside Tilt On a 3-Month Horizon – Danske

EUR/USD is drifting lower, trading in a limited range. What’s next?

Here is their view, courtesy of eFXdata:

Danske Research discusses EUR/USD outlook and  maintains a neutral bias with a downside tilt over the next 3 months. Beyond that, Danske is constructive on EUR/USD on a longer-time frame.

On a 3M horizon, we see EUR/USD trapped in a range around 1.13 but with risks tilted to the downside  as ECB will be forced to keep a soft stance at a time where Fed looks more side-lined. Relative cyclical hints will be key near term – but a trade deal could be a kneejerk USD positive,” Danske notes.

Beyond the 6M horizon, a drift higher will materialise as the skies clear a bit for the Eurozone, but  we still merely target 1.17 in 12M. For now, ECB has effectively put a lid on the cross and with still heavy carry, we continue to advocate risk reversals when hedging USD income/assets,” Danske adds.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.