Credit Agricole: bullish on EUR/USD
Analysts at Credit Agricole expect EUR/USD to correct higher from this point and reach levels above $1.3000 in the coming weeks.
According to this bank, the Fed members will try to weaken the expectations of interest rate increases because of the recent discouraging data, while the ECB, on the contrary, is unlikely to communicate a more aggressive monetary policy stance anytime soon as it needs time to assess the impact of the existing measures. As there are still plenty of large EUR shorts, Credit Agricole expects that some of them will be covered pushing EUR/USD up.
Credit Agricole bought EUR/USD last Friday at $1.2660 with a target at $1.31 and a stop of $1.2350. Credit Suisse entered a EUR/USD long from $1.2820.