EUR: Cheaper levels – ING
|At some points over the last six weeks, it felt like there was no point trying to pick a top in EUR/USD as overwhelming bearish sentiment on the dollar dominated. But that EUR/USD move to 1.15/16 did mark an extreme 5/6% over-valuation on our short-term financial fair value models and served as a reminder that there are some limits after all, ING's FX analyst Chris Turner notes.
Current corrective dip can find good buyers in the 1.1030/50
"For now, it looks as though EUR/USD has completed a first leg in a sequence of what could be a multi-year bull trend. We imagine this current corrective dip will find good buyers in the 1.1030/50 area, with outside risk to 1.0850. But this week's decline makes us feel more comfortable about our year-end target of 1.13, which otherwise had looked too conservative. We have a slight EUR/USD bias to 1.1030/50 today."
"Some potential challenges to the dollar later this week could be Thursday's US retail sales data for April and Friday's TIC data for March – the latter showing whether foreign investors (including central banks) have been leaving US asset markets. EUR/USD will also be interested in whether all three leaders of the US, Russia and Ukraine make it to Istanbul this Thursday."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.