EUR/USD is down 3 pips to 1.1735 today
TD Research likes fading rallies in EUR/USD from 1.1750.
"We reckon that dips in the USD will get faded as payrolls matter more for the taper discussion then what is a well-known story of 'transitory' inflation pressures peaking," TD notes.
"More broadly, the US real rates have diverged from its German peers (thanks Clarida); the last time this happened was in late February and through March, which also saw broad USD strength and a 5 big figure drop in EURUSD. First fade level comes in at 1.1750," TD adds.
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