By eFXdata — Oct 15 - 09:01 AM
Societe Generale Research sees EUR/USD testing 1.16 and looking to buy AUD/USD on further dips.
"There's no good news in Europe with the focus entirely on rising Covid infection rates, while EU/UK trade talks the Recovery Fund occupy minds as well. The danger is that if US equities go on falling this afternoon,...the September's low just above 1.16 will come into view. If that happens on the back of a significant reduction in speculative positioning, we will see it as a healthy part of a building foundations for a move through 1.20 after the US elections," SocGen notes.
"Our long-term views, that AUD is relatively cheap, that public finances are in better condition than Australia's peers and the economic outlook is relatively bright, will keep me bullish medium-term, and we'll look for levels to buy on this move, which has further to go,' SocGen adds.
Société Générale Research/Market Commentary