EUR/USD had another down week, reaching 5-month lows. What’s next?
Here is their view, courtesy of eFXdata:
Bank of America Merrill Lynch Research discusses EUR/USD outlook and maintains a tactical bearish bias, expressing that via holding a short EUR/USD position targeting a move to 1.15.
“The USD rally is not done yet, in our view. We see the considerable risk of further position liquidation potential in EURUSD specifically, triggered by bearish price momentum.
FX/CTA investors look to be pressing the short side, and leveraged investors are typically flat,” BofAML argues.
“In short, momentum has turned sharply against EURUSD, and momentum-sensitive investors seem to be trading the theme fairly aggressively,” BofAML concludes.
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