EUR/USD: High in Place? – Westpac
Richard Franulovich, Strategist at Westpac, believes the pair could have recently carved a top above the 1.1600 handle.
“EUR/USD’s sharp reversal off a critical resistance zone hints that a high may be in place for now”.
“Fed messaging in coming sessions likely to emphasise June is live and global/financial risks have dissipated, a backdrop that EUR is unlikely to sustain gains against”.
“EUR could pull back to 1.13-1.14 in coming days. But, given that the Fed is unlikely to ultimately deliver a June hike, EUR should eventually right itself”.
“Improving EUR data trends - 0.6% Q1 GDP, upward revisions to the final April PMI to 51.7 and the sharp rise in the ZEW expectations survey - should also limit EUR downside”.