EUR/USD still a ‘sell on rallies’ – Westpac

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Strategist at Westpac Richard Franulovich has recommended selling the pair on an occasional test of the 1.1200 area.

    Key Quotes

    “EUR/USD is materially overvalued against 2yr Bund-Tsy spreads, the latter suggesting 1.05/06 is more “reasonable”.

    “That said a run at 1.12 likely if Draghi does not leapfrog expectations, as seems likely. Any squeeze though should lack legs, the FOMC a week later likely to sound more hawkish by noting that future meetings are live and the risks are balanced”.

    EUR/USD a sell into 1.12”.

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