EUR/USD: 'Closing-In On Bottom': What's The Trade? - Danske

Lyca Digital
Danske Bank FX Strategy Research argues that EUR/USD is closing in on bottom but a sustained move above 1.20 is not imminent. 
"We see EUR/USD around current levels on a 1-3M horizon but stress that risks to our 3-6M forecast of 1.19 remain on the downside, with a key risk being the appointment of a more hawkish Fed chair.
This said, we do not think EUR/USD has the potential to fall much further with 1.1660 (17 August low) a key support level and like to position for a 2018 rebound towards 1.25 (12M target) on Q4 dips as upside risks dominate the longer term outlook, Danske advises.