CitiFX Research discusses EUR/USD outlook and adopts a sell-on-rallies strategy on a move into 1.2020-2050.
"The May FOMC had a tinge of dovishness, and yet EUR trades rather poorly. We have more confidence now to sell rallies," Citi argues.
"The 200 day moving average gave way and we have continued to trade below since (1.2017). The 1.1915-1.1950 area (92.8093 in DXY) needs to be watched on the downside (topside) should we break we may set up for the next leg lower in EURUSD," Citi adds.