EUR/USD is drifting higher, but in a relatively narrow range. Has it gone too far? Here is the view from Barclays:
Here is their view, courtesy of eFXnews:
Barclays Capital FX Strategy Research argues that EUR/USD has likely overshot and expects monetary policy divergence to remain an important element for a tactical retracement.
Barclays also notes that technicals also argue for EURUSD depreciation in the form of a break of the 38.2% Fibonacci retracement (previously respected by the August 2015 high as a resistance level).
“We think if the May 2016 highs of 1.1619 and the upward trend in lows (which has not been broken since April 2017), currently at 1.157, are broken, then a move toward the next significant support level at 1.123 is likely,” Barclays projects.
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