EUR/USD is trading in a narrowing channel, with stability being the name of the game. What’s next?
Here is their view, courtesy of eFXdata:
Bank of America Merrill Lynch discusses EUR/USD technical outlook and notes that price action is trading tighter and tighter between two converging trendlines, commonly referred to as a triangle pattern.
“Disciplined technical traders look to follow the breakout by either buying above 1.1750 or selling below 1.16/1.1575.
Given the five waves that describe the sideways triangular price action, we are inclined to think this pattern resolves lower, which targets the 1.12s, especially while still below the 1.1855 level,” BofAML argues.
For lots more FX trades from major banks, sign up to eFXplus
By signing up for eFXplus via the link above, you are directly supporting Forex Crunch.