BoA: forecasts for FX majors
Bank of America Merrill Lynch has the following views on the main currency pairs:
EUR/USD: A closing break of $1.3166 needed to confirm a top and resumption of the medium term downtrend for $1.2755 (July low) before the $1.2457 swing target.
GBP/USD: The pair has already resumed its medium term bear trend for $1.4783/1.4767 and below following yesterday’s close below $1.5264. Sell on bounces.
USD/JPY: The pair will continue declining to 93.65/73, potentially 90.91.
GBP/JPY: If the pair closes below 147.56 the pair will complete a 3.5-month head and shoulders targeting 137.69.