Danske Bank: EUR/USD moves towards 1.2000
According to analysts at Danske Bank, EUR/USD could hit 1.2200 in a 3-month horizon. They expect the price to hit 1.2000 in 6 months.
In the near term analysts concede a bounce higher - positioning has become remarkably stretched. “Moreover, the cross has been technical oversold according to RSI for several weeks, also suggesting a high correction risk”, analysts add.
“However, the major trend of a stronger USD remains firmly in place both against low yielders like the EUR, CHF and JPY and currencies like the NZD and AUD", Danske Bank assures.