EUR/USD failed to reconquer lost levels and seems somewhat lost. What’s next?
Here is their view, courtesy of eFXdata:
TD Research discusses the EUR/USD outlook and thinks that the cross is a medium-term buy on dips but prefers to express EUR upside via holding EUR/CAD 3-month risk-reversal.
“The next three days will set the tone for the next few weeks, especially as NAFTA headlines trickle out, China/US trade talks resume and the academics pontificate on policy and the global economy at Jackson Hole.
We don’t think the EUR is ready to return to primetime yet, as the tracking of high-frequency data has not offered a strong buy signal. The technical test is whether we can break 1.17, which is more likely later in the fall,†TD argues.
“Still, we think EURUSD is a buy on dips play rather than trending lower at this point and hold upside exposure to long EURCAD through a 3m risk reversal,†TD advises.
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