EUR/USD short-term price action is bullish – BNPP

Analysts at BNP Paribas explains that the EUR/USD short-term price action is bullish and likely to test the critical resistance level of 1.0850.

Key Quotes

“We see increasing probability of a sharp EUR/USD squeeze toward 1.13 up to 1.15 if (and only if) 1.0850 is broken to the upside.  Even in the case of sharp squeeze materialising, we still believe the bear trend would resume once 1.13 (up to 1.15) are reached and still expect EUR/USD to fall to 1.0 down to 0.95 by 3Q or 4Q17. Similar FX squeeze levels are to be monitored on USD/JPY at 111.3 and gold at 1,250.”