What's next for the euro?
Bank of America Global Research discusses EUR/USD technical outlook and sees a scope for a move towards 1.1495, ahead of 1.13s.
"Euro has declined and broken below 4Q20 supports at 1.1603. Our modest bear case scenario estimates downside euro levels of 1.1495, 1.13s and possibly 1.1290. Should the decline accelerate then we may see 1.1127, 1.10 and possibly 1.0817," BofA notes.
"We focus more on the 1.13s in Q4 because it means the declining trend line from the 2008 peak will be tested. Often times, great resistance lines turn into support lines. A horizontal red line also makes the 1.13s area look supportive due to resistance seen in 2019-2020. For now, a rally to 1.1668-1.1710 looks like it can be sold," BofA adds.
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