EUR/USD is off the highs but has never gone too low. The pair is still trading on relatively high ground and quite stuck in a range. What’s next? Here are two opinions:
Here is their view, courtesy of eFXnews:
EUR/USD: USD Support To Fade Soon; Where To Target? – ING
ING FX Strategy Research notes the USD relatively recovered on Chair Yellen’s comments over the weekend about the anticipated acceleration in inflation and subsequent rate hikes.
In that regard, ING expects the USD recent recovery to be fairly short-lived and limited in coming days.
“This is because (a) markets already assign a large probability (70-80%) to a Dec rate hike; (b) limited US data this week that could move USD meaningfully higher.
Target-wise, ING is mildly bullish on EUR/USD near-term targeting a move towards 1.20 in 1-month.
EUR/USD: Stuck In A Range 1.1880-1.660 Range; What’s Next? – SocGen
Societe Generale Cross Asset Strategy Research notes that 1.1880-1.1660 seems to define the EUR/USD range for now.
“Failure to break the former level has triggered a reversal, or if you prefer, a combination of political uncertainty one Catalonia and Austria has seen the enthusiasm for the euro wane a bit,” SocGen adds.
Looking ahead, SocGen thinks that EUR/USD looks stuck in a range until it breaks free and perhaps we need positions to clean themselves out somehow before we can break decisively higher.
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