EUR/USD: analysts’ comments
Analysts at BBH recommend buying EUR/USD a pullback into to $1.3590/3615 targeting $1.3711 and above this level $1.40.
Citibank also has the near-term targets at $1.40 where the bank recommends selling the single currency. According to Citi, euro may rise as it’s the second most liquid reserve currency, the Fed’s likely to delay QE tapering and America may lose its top credit rating. The specialists think that EUR/USD will turn down once touching levels above $1.40 as the ECB won’t tolerate such a high exchange rate and will probably announce LRTO, while the Fed will still move to exit from QE at early 2014.
Morgan Stanley has another strategy. The bank proposes to sell EUR/USD at $1.3800 with stops at $1.3970 and a target at $1.3330.