EUR/USD: 2017 high of 1.2092 should provide good support – Danske Bank

Chief Analyst, Allan von Mehren at Danske Bank, notes that EUR/USD remained under pressure yesterday as markets digested Powell’s hawkish tone in the House hearing.

Key Quotes

“There is a risk this move could be sustained today around the Senate hearing, we maintain that for EUR/USD the 2017 high of 1.2092 should provide good support. Indeed, if the cross is moving close to 1.21 it would in our view be a buying opportunity: the risk of US inflation outperformance favours a weaker USD still as long as Powell makes no revolutions at the Fed. We remain long the cross via options as one of our FX Top Trades 2018.”