Analyst at Danske Bank Aila Mihr sees the pair edging higher in the medium to long terms.
“The EUR rally lost momentum yesterday and EUR/USD fell back to 1.11 level. There was no news or data releases triggering the move, but stretched short-term technicals most likely prompted profit taking following the past days’ strong rally”.
“We think the eurozone is unlikely to be immune to a likely turn in the global cycle, which our cyclical lead models point to, and the recent uptick in the effective euro should ensure that the ECB stays in easing mode”.
“We remain bullish EUR/USD and EUR/JPY on a medium- to long-term horizon as fundamentals such as valuation and current-account balances remain supportive. We would look to re-enter a bullish position in both pairs if a setback in EUR crosses materialises in coming months”.
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 securities. 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 Forex 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.