EUR/USD: Risk-Reward Favors Selling Bounces; A Weekly Close Below 1.17 Key - BofAML





Bank of America Merrill Lynch FX Technical Strategy Research still sees a case in favor of the USD strengthening in 4Q17.
"It seems the jury is still out on whether this is a4Q bounce or the start of a larger uptrend. 
However we think the risk/reward still favors being long some USD, especially with the push for a favorable USD verdict before year end," BofML 
In terms of EUR/USD, BofAML argues that a close this week below 1.17 forms an even larger head and shoulders top than the one formed in September and this top projects down to 1.1320.
In line with this view, BofAML maintains a short EUR/USD* targeting 1.15 with a stop at 1.21.

Comments