BTMU FX Strategy Research discusses EUR/USD outlook for the coming week and makes the case for further upside towards 1.2050 and expects 1.1650 to cap any downside in the near-term.
"The euro has continued to rebound against the US dollar over the past week... The increasingly robust growth outlook remains supportive for a stronger euro and is unlikely to be derailed by political uncertainty. At the same time, the US dollar is weakening across the board again undermined in part by more dovish Fed rhetoric.
The release of the latest PCE deflator report and speeches by Fed Chair Yellen and Vice Chair Dudley are the main event risk in the week ahead," BTMU argues.