EUR/USD: Elevated Spec Positioning Indicates EUR Closed To Oversold Territory – Credit Agricole

EUR/USD jumped higher on the EU Summit deal. Yet it may still be in oversold territory.

Here is their view, courtesy of eFXdata:

Credit Agricole Research discusses EUR/USD outlook and maintains the view that downside should be limited from current levels.

“This is also due to still elevated speculative short positioning, which continues to indicate that the EUR is close to oversold territory,” CACIB notes.

Elsewhere, CACIB notes that the bar for positive surprises as when it comes to the upcoming EU summit seems low.

“This is especially true as expectations with respect to more meaningful process as when it comes to immigration seem low.  As CSU head Seehofer softened his stance in that respect already, there is a low risk of another political crisis in Germany,” CACIB adds.

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