EUR/USD: buy the pullbacks
Buy EUR/USD on the dips - this is what the analysts suggest.
Credit Agricole: There is little scope for investors’ Fed monetary policy expectations to drive the USD considerably higher any time soon. On the contrary, there may be scope for expectations about any tapering of QE to be delayed into next year should incoming US growth data fail to surprise positively. Elsewhere, we see scope for euro zone business activity to remain constructive. We expect dips in pairs such as EUR/USD to remain a buy.
UBS: As a reaction to the recent sharp advance, there is scope for a short-term setback to unwind. Support is at $1.3498 ahead of $1.3392. Resistance is at$ 1.3569, a break above which would open the way to major resistance at $1.3711.
ANZ: The potential has increased for a much earlier than anticipated test of this year’s $1.3710 high and an area of measured targets in the $1.3800/00 area. The current structure suggests that dips should be seen as buying opportunities, though this is dependent on remaining above $1.3445 (ideally $1.3475). Any deeper pullbacks will threaten the structure of recent gains with a break below $1.3400.