EUR/USD is trading at 1.1975, after having reached a high of 1.1985. The move is basically around the corner. What’s next afterward? Here are two opinions:
Here is their view, courtesy of eFXnews:
EUR/USD: A Break Of 1.20 To Target 1.2353; GBP/USD: Fade Rallies Into 1.30 – TD
TD FX Strategy Research argues that a break of 1.20 in EUR/USD will likely pushe the market to target the January 2015 high of 1.2353.
“A decent inflation number this week will help test the 1.20 level, but we do think we will still see the EUR consolidate a bit before testing levels in the mid-1.20s.
On the GBP front, TD notes that this week also brings new Brexit news, with negotiations kicking off this week.
“The news that Labour wants to push for a softer Brexit has provided GBP a modest tailwind to start the week.  The center of gravity is shifting to a softer Brexit, but that is a longer-term development.
For GBPUSD, we see strong resistance near-term around 1.30 and like fading moves there,†TD advises.
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EUR/USD: To 1.20 Before A Correction; GBP/USD: Bumping Along Before A Sell – SocGen
Societe Generale Cross Asset Strategy Research argues that while the human and economic tragedy taking place in Texas can’t be ignored, the underlying force of low rates and easy money will go on being the dominant market driver.
“So We’ll watch the euro overshoot above 1.20 and look for a September correction.
We’ll look for sterling to go on bumping along the bottom in trade weighted terms, and perhaps propose shorts in GBP/USD when the dollar looks like a buyâ€, SocGen argues.
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