EUR/USD seen below 1.20 for longer

31 May, 2018

Chief Analyst at Danske Bank Christin Tuxen gives her views on the prospects for the pair in the next months.

“Near term, we expect new 2018 lows as notably the US favourable cyclical position continues to manifest itself… Risks to our forecast profile are now clearly on the downside, and especially we emphasise that our 12M forecast (1.28) is challenged as we now envisage an extended period during which EUR/USD will be stuck below 1.20 as support from ECB ‘normalisation’ has been postponed”.

“In our view, clients with USD income/assets should consider risk reversals for hedging purposes out to the 6M horizon as the risk of a significant EUR rebound here has been postponed. Beyond the 6M horizon we think forwards remain attractive, and clients with USD income/assets should exploit the spot dips, which we think will occur near term, to lock in exposure at longer horizons”.


Source   Presented by HYCM
Euro declines on the back of risk aversion30 Jun, 2020  

On Monday the 29th of June, trading on the euro closed up. The EURUSD pair rose by 0.22% to reach 1.1241. Trading on the US stock market closed up...

EURUSD holding steady below the balance line25 Jun, 2020  

Considering that our pair has dropped from 1.1349 to 1.1236 without any pullbacks, the current momentum should be enough to take it to the 112th degree...

EURUSD: bulls planning to test 1.130023 Jun, 2020  

On Monday the 22nd of June, trading on the euro closed up. The single currency rose to 1.1270 against the dollar. Investors seemed to have forgotten about...


Euro struggles against Dollar; Gold wobbles18 Jun, 2020  

The Euro remains trapped in a fierce battle against an unyielding Dollar with prices trading marginally below 1.1250 as of writing...

EURUSD: continued flat to around 1.130010 Jun, 2020  

The EURUSD pair was held up by the yen, which rose by 1.04% to reach 108.43 against the dollar. The yen is considered a safe haven asset, so investors...

EURUSD: markets await Lagarde speech5 Jun, 2020  

Trader attention is turned towards the ECB meeting and the following press conference with Christine Lagarde. Interest rates are expected to be maintained...


EURUSD: continued growth expected21 May, 2020  

The promising results of COVID-19 vaccine trials have reduced demand for the safe haven assets. The majors are trading up against the dollar...

EURUSD: expected rebound from the lower line14 May, 2020  

The pair rose to the balance line as expected. At the time of writing, the euro is trading at 1.0807. The majors are currently trading down...

Bulls trying to strengthen the upwards impulse11 May, 2020  

Before the recovery, we got a double bullish divergence model. This should see a bounce to 1.0926. If we assume that we're going to get a flat, then this is the model...