EUR/USD aims for a test of 1.0800 – Westpac

In opinion of strategists at Westpac, EUR/USD could be headed towards a test of the 1.0800 neighbourhood.

Key Quotes

“EUR/USD hugging 1.10 tightly but should make a clean break below en-route to 1.08 soon enough, amid post-Brexit diversification flows, elevated political risks as terror attacks across the Zone play into the hands of Eurosceptic forces and likely further firming in Fed tightening expectations to nearer 40-45% for their Sep meeting before they stabilise (currently 28%)”.

“Trend signals on daily and weekly charts looking bearish. EUR does not seem to be in a hurry though should continue to slip”.