EUR/USD: what do banks say?
SEB Bank: “There’s a good chance that we will see the pair falling down around $1.3100. Thereafter there’s a growing risk of a $1.3218/55 bounce lurking given the possible completed five wave decline (the 1st part of the decline).”
Commerzbank: “Intraday charts are still indicating that we should allow for a rally of no more than 1.3175/1.3220 ahead of further losses to both retracement levels at 1.3020 and 1.2904 (61.8% and 78.6% upside from July).”
Danske Bank: “US money market curve has steepened significantly recently. Our interest rate strategists still look for at near-term flattening, which potentially could trigger a 1-2 figure correction higher in EUR/USD… However, with a dovish ECB and the Fed starting to taper, risks admittedly seem to tilt more and more to the downside”.