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EUR/USD is flirting with the 1.20 level once again, but with lots of caution. Where next?

Here is their view, courtesy of eFXnews:

ABN AMRO FX Strategy Research argues that  in the near-term net-long position liquidation will probably push EUR/USD towards 1.15, but later in the year expects EUR/USD to move back above  1.20.

“We expect the – albeit slow – ECB exit to support the euro, just as the initial Fed exit did. We expect sentiment towards the US dollar to remain negative and the Fed not to hike more aggressively than financial market now price in. However, the upside in EUR/USD will likely be dampened somewhat as the Fed reduces its balance sheet,” ABN AMRO argues.

ABN AMRO now targets EUR/USD around 1.15 by end of month, 1.20 by end of year, and 1.30 by end of next year.

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