After a week in which the dollar did not dominate all currencies for a change, there are certainly dollar bulls out there.
The team at Bank of America Merrill Lunch is bullish on the greenback against both the euro and the yen. Here are charts and targets:
Here is their view, courtesy of eFXnews:
Bank of America Merrill Lynch remains bearish EUR/USD arguing that the bear trend remains on firm footing below 1.1902, the 6 week channel resistance.
“Initial targets are 1.1749/1.1706 ahead of 1.1667/1.1641,†BofA projects. Longer term BofA targets 1.1500 ahead of 1.1212 and eventually 1.0588/1.0283.
“Risk of n/term basing into 1.1667/1.1641, but gains are corrective and limited to 1.1902, worst case 1.1977/1.2000,†BofA argues.
“Trouble start on a break of 1.2000/1977. Bulls need a break above 1.2235 to gain control,†BofA add.
In USD/JPY, BofA is bullish and long looking for a resumption of the long term uptrend for 124.16/59.
“A break of 120.00 and then 120.83 confirms a return to trend. Below 118.05 indicates a greater base than anticipated,†BofA projects.
In line with this view, BofA maintains a long USD/JPY position from 119.41 with a target at 124.59, and a stop at 118.03.
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