EUR/USD continued grinding lower and is already at a 6-month low. What’s next? There may be more falls to come.
Here is their view, courtesy of eFXdata:
Citi discusses EUR/USD outlook and and maintains a tactical bearish bias in the near-term.
“Market feeling underinvested in the EUR short trade, put money to work. We believe the market still feels that they are not short enough, and thus every rally continues to be sold into. That said, we have had a large move in rate differentials. If the market was so keen to use that as an excuse to be short, that will likely drive price action over the week.
Weekly close below the 55 week moving average confirmed the bearish outside week in continuation. Now on the topside the 1.1825-1.1830 should act as resistance.
We still think there is pain to come for EURUSD longs and we may see 1.14501.1550 where a number of supports converge,†Citi argues.
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