EUR/USD: To 1.23? 1.30? Where Next After The Big Breakout?

EUR/USD rallied on the news about a German coalition, a somewhat bullish ECB and the great weakness of the US dollar, that failed to rally on good American figures. What’s next? Here are four opinions:

Here is their view, courtesy of eFXnews:

EUR/USD: Targeting 1.30: ‘It’s More A Question Of How, Not if We Get There’ – ING

“The broader fundamental reasons for a stronger EUR in 2018 : (1) above-potential Eurozone growth, (2) greater European integration, (3)structural and financial reforms and – most importantly – (4) the markets’ general underestimation of the pace and extent of ECB policy normalisation,” ING argues.

“The easing of short-term political risks and a resilient Eurozone economy should give way to a higher EUR. We expect forward-looking FX markets to price in the ECB’s next policy steps this summer (call it Sintra Part II)– and that will see EUR/USD trading at 1.25,” ING adds.

“All of this means that we’re looking for EUR/USD to gravitate towards 1.30 by end-2018 – and for us, it’s more a question of how, not if, we get there.”

EUR/USD: Scope For A Push Towards 1.23 Before Looking To Fade – TD

TD Research discusses EUR/USD outlook in light of the hawkish tone of this week’s ECB minutes.

As we have noted a few times this week, even though data momentum has tailed off a bit, the pullback was shallow, and recent reports reinforce EUR strength. Short-term EUR valuations look clean as well with the single currency trading at our HFFV level, leaving room for a push towards 1.23 before looking to fade.”

EUR/USD: Tech Signal Of A Bullish Breakout: Levels & Targets – BofAML

Bank of America Merrill FX Technical Strategy Research discusses EUR/USD outlook and notes that the surge through 1.2092 is an early sign of a bullish breakout which should be confirmed with a close above 1.21.