EUR/USD moved up and down on Brexit and other news. Where next?
Here is their view, courtesy of eFXdata:
MUFG Research discusses EUR/USD outlook and flags a scope for testing key technical support levels at 1.1200 and 1.1000 before year-end.
“We doubt that downward pressure on the euro will ease soon unless there is a sharper sell off in global risk assets which could trigger a temporary shake-up of current short euro positioning. Fundamental pressures remain negative for the euro in the near-term. There appears little chance that Italy’s re-submitted budget will materially ease tensions with the EU,†MUFG argues.
“In these circumstances, market sentiment towards the euro is likely to remain negative in the near-term. The next key technical support for EUR/USD levels come in at 1.1200 and 1.1000 and are likely to be tested before year end,†MUFG adds.
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