EUR/USD has been on a recovery path but still looks hesitant. What’s next?
Here is their view, courtesy of eFXdata:
Bank of America Merrill Lynch Research discusses its findings in using a touch of machine learning on EUR/USD in studying the current state via fundamental and survey data, employing both supervised and unsupervised learning on various forms of transformation.
“Machine learning is a method that uses statistical techniques to learn from data, identify patterns and make decisionsâ€.
“Our surprised learning via SVM indicates we are currently at the boundary of state 2 near the support vector hyperplane. The implication is that it is highly unstable and likely to migrate to a nearby state.Â
If such conjecture turns out to be valid, it would suggest that the Eurodollar has further downside while vol is likely to remain range bound,†BofAML concludes.Â
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