EUR/USD: No Change In S/T Story (A Tired Rally) Or L/T Story (Heading To 1.30) – SocGen

The euro lost some ground the dollar in limited range trading. However, this tired rally may make way for gains down the road.

Here is their view, courtesy of eFXnews:

Societe Generale Cross Asset Strategy Research discusses EUR/USD outlook and maintains its bullish medium-term bias over the coming months.

“EUR/USD tested 1.2450 and then fell just below 1.23 during Mario Draghi’s ECB press conference a week ago. It’s not really moved out of that range since. Softer US yields don’t help much when Bund yields are falling too.

Neither the long-term story (ECB heading towards policy normalization, EUR/USD heading to 1.30) or the short-term story (a tired rally) seems set to change,” SocGen argues.

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