EUR/USD likely rangebound between 1.0350 and 1.0750 – Danske Bank

Analyst at Danske Bank Thomas Rosenlund expects the pair to navigate between 1.0350 and 1.0750 in coming months.

Key Quotes

“EUR/USD traded just above the 1.0750 level most of the time overnight as comments from US Treasury Secretary nominee Steven Mnuchin about the strong dollar weakened the greenback further”.

“As such, we still see EUR/USD in the range of 1.0350-1.0750 in coming months, targeting 1.04 in 1M and 1.05 in 3M”.

“However, the lack of details in US president Trump’s economic plans is clearly hurting the dollar, and as it remains uncertain when we will get more details, it could continue to grind lower in the near term”.

“Tactically, we still favour selling EUR/USD on rallies, but note that technically, a clean break of the 5 December high at 1.0796 could open up for further EUR/USD upside and thus challenge our call for a lower EUR/USD near term”.