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What is the next direction of EUR/USD after the big bounce? Some see it as  running up to 1.31, but  of course, not all agree.

SocGen  suggests selling euro/dollar upon a failure to breach 1.29:

Here is their view, courtesy of eFXnews:

The dollar index (DXY), peaked on the same day (Oct 3) as 2-year rates, notes SocGen.

“Today’s US economic data (existing home sales) should be reasonably upbeat (exp +1.6% to a 5.13mln rate) but isn’t very market-moving. Tomorrow’s CPI data are unlikely to trigger a move to higher rates either,” SocGen adds.

So dollar bulls need to be patient and wait for more meaningful data,” SocGen argues.

Last week’s DXY low at 84.50 (84.85now) is psychologically the key to this week’s trend, and we will look to buy if it holds, which really means selling EUR/USD on a failure to break 1.29,” SocGen advises.

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