Fundamental Analysis by Morgan Stanley - USD: 'We remain bullish on USD'

Fundamental Analysis by Morgan Stanley - USD: 'We remain bullish on USD'

14 September 2015, 18:11
Sergey Golubev
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Morgan Stanley made weekly forecast for USD in fundamental/technical mixed way expecting strong USD against the other currency for example:

"We remain bullish on USD, particularly against EM and commodity currencies. We expect no hikes at the upcoming Fed meeting. This could offer some temporary support to EM currencies, as markets are still pricing in roughly a 30% chance of a hike. However, we would expect any relief rally to be short-lived, as within a short time period, we would expect the market to focus on a December hike and weak EM growth."

From the technical point of view - USD is located above 100-SMA/200-SMA for ranging within 98.33 key resistance  and 92.62 key support levels for crossing symmetric triangle pattern for the bullish trend to be continuing.

  • If the price breaks 98.33 resistance from below to above so the bullish trend will be continuing in good breakout way.
  • If the price breaks 92.62 key support level from above to below so we may see the secondary correction within the primary bullish condition.


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