eFX report on EUR/USD analysis from Soc Gen:
"Fundamental market drivers haven't changed, but positions were crowded.
- If we can now reduce excess dollar shorts, then we're setting the stage for a few more very messy days before underlying trends reassert themselves.
- Our Q1 EUR/USD forecast (1.20) no longer looks outdated, and we hope that level will provide a base for this move
The key issues going on from here may be
- 1) can the ECB successfully talk the euro down, and
- 2) does relative growth mater in FX (not just in EUR/USD)"
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It took me a couple of reads to makes sense of this.