Citi discusses EUR/USD outlook and maintains a bearish bias in the near-term, and a bullish bias in the medium-term.
"CitiFX Strategy outlines the team is still tactically bearish EUR. For now, we continue to see a risk of slight short-term downside in EURUSD in the context of tactical upside in USD following the hawkish tilt from the Fed. We maintain our medium-term EURUSD bullish view.
"The tide could be tentatively turning as CitiFX Technicals outlining cautious optimism for an upcoming EUR rally. The pair continues to remain above the 200d MA of 1.1830, and has longed held above the average since May 2020. Additionally, daily momentum remains heavily oversold and could signal a possible reversal ahead. Nonetheless, US yields will remain the fulcrum on the direction of price action," Citi adds.