EUR/USD: Close To An Attractive M-Term Buying Territory – Credit Agricole

Here is their view, courtesy of eFXdata:

Credit Agricole Research discusses EUR/USD outlook and thinks that the cross is inching closer to an attractive medium-term buying opportunity as positioning looks to be shifting towards balanced territory. 

“Looking ahead, in our view, any currency downside from current levels should prove to be limited, not only because we believe that inflation developments will considerably improve but also as speculative-EUR long positioning looks to be shifting towards balanced territory.

Indeed, speculative-oriented-investors continue to run sizeable EUR-long positions. However, according to our data, it is broadly in line with its medium-term average. In fact, short-term positioning seems to be on the short side. This in turn suggests most of the longs that are left are structural in nature and such conditions lower the risk of additional position-squaring-related downside,” CACIB argues.

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