EUR/USD has been flirting with 1.10 lately, but hasn’t really made a definitive decision on its next direction.
The team at Bank of America Merrill Lynch sees more gains ahead for the pair and has ideas also on GBP and AUD:
Here is their view, courtesy of eFXnews:
EUR continues to push higher against both the USD and GBP, notes Bank of America Merrill Lynch.
“While the immediate picture for EUR is not exactly clear, we could pull back to 2wk trendline support at 1.0763 before resuming upwards to 1.1098/1.1188 before forming a larger top and resuming the long term downtrend,†BofA projects.
“Watch the micro-term range between 1.1027/1.0898 for direction,†BofA advises.
In contrast, BofA notes that EUR/GBP continues its stair step higher towards 0.7405/0.7429.
“Into here we look for signs of topping, but it would take an impulsive break of 0.7304/0.7295 before we could say that the larger bear trend is resuming,†BofA adds.
Finally, BofA remain bullish on the AUD/USD.
“With the 50d avg (now 0.7825) turning from medium term resistance to new support, we look for further gains towards 0.8264/0.8296 before renewed topping,†BofA projects.
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