EUR/USD: Rejected Above 2018 Low But A Break Is Still Likely N-Term

Danske Research discusses EUR/USD outlook and maintains its view that a break of 2018's lows is still on the cards in the near-term.

"It is noteworthy that USD has recently gained almost irrespective of equity moves, cementing that the key cause of USD support is recent US economic out performance .

Even though EUR/USD was initially rejected just above the 2018 low (1.1301), we maintain that a break is likely as USD momentum is significant at present; thereafter good support at 1.1220 (26-Jul-17 high)," Danske argues.