CitiFX Technicals discusses EUR/USD long-term outlook and flags a scope for a move into 1.40 in 2021.
"A 3 rd bullish outside year (Potentially) in the history of floating exchange rates will come on a yearly close above 1.1570. This also comes off long-term trend line support from 1985," Citi notes.
"Yearly momentum is turning up and crossing over from levels only seen twice before- 1986, 17 years later in 2003 and 17 years later in 2020. The only time that has seen both a bullish outside year and cross up in yearly momentum from at or below levels of 20% was 1985-1986 which led to a 3 year low to high move of over 105%. The 2002-2004 move was a mere 60%," Citi adds.