EUR/USD: Breaks Of 1.15 Likely Shallow & Short-Lived; EUR/GBP; A Sell Above 0.8950 – Danske

EUR/USD managed to recover after tumbling down. What’s next?

Here is their view, courtesy of eFXdata:

Danske Research discusses its tactical EUR/USD and EUR/GBP outlook and trading strategy.

“The Italian budget issue should not weigh much further on EUR near term, positioning is stretched on USD longs (and neutral EUR), and good technical support is seen in EUR/USD around 1.15; this suggests to us that a break of this level should be shallow and short-lived,” Danske argues.

We look for EUR/GBP to remain range bound (0.875-0.895) near-term with Brexit uncertainty expected to remain a key source of volatility. From a risk/reward perspective, we would consider selling EUR/GBP if the cross breaks above 0.8950,” Danske adds.

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