EUR/USD: Stabilizing But Simple Momentum Could Trigger A Breach Of 1.15 – MUFG

EUR/USD shot higher on the smiles that emerged from the EU Summit on migration. What’s next?

Here is their view, courtesy of eFXdata:

MUFG Research discusses EUR/USD outlook and thinks that there is still a scope for a breach below the important 1.15 level in the near-term.

“EUR/USD is now threatening the 1.1500 level for the third occasion since late May and there is a high risk that simple momentum along with risks from Washington taking us below this level. We may need this to happen to create the conditions for a recovery.

The safe-haven status of the euro remains based on previous performances when equity market suffers and a further lurch lower may well then help draw in better demand. But for now, we will signal a bearish bias,” MUFG argues.

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