EUR/USD traded in range for quite some time. BofA Merrill Lynch thinks that bears should stay patient, with one more correction due before the downtrend resumes.
They are also bullish on the greenback against the yen, and see USD/JPY resuming its uptrend:
Here is their view, courtesy of eFXnews:
EUR/USD, BofA thinks that while the correction continues, bears should stay patient.
“Since the Jan-29 low at 1.1098, EUR/USD has been stuck in a choppy correction. Within this correction, we look for one last push higher toward 1.1730, before renewed topping and a resumption of the larger bear trend for 1.1098, ahead of 1.0765 and eventually below,” BofA projects.
“A break of 1.1270 says the downtrend is resuming,” BofA adds.
USD/JPY is on the edge of resuming its bull trend, says Bank of America Merrill Lynch.
“While the near-term swings have been quite frustrating, the medium-term view remains bullish. Indeed, the 118.15 low could have marked the end of this 2m range trade,” BofA argues.
“Above 120.46 would confirm a resumption of the larger bull trend, targeting 124.16/124.59,” BofA projects.
“Back below 118.00 says all short-term longs should adopt a neutral stance, while it will take a break of 116.15 (Triangle sup) to point to a turn in trend,” BofA adds.
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