FXStreet (Łódź) - The eFXnews team comment on Morgan Stanley’s EUR/USD forecast which assumes that the pair after crossing and holding below the key 1.35 level has room to move lower.
"Over the medium term we look for a move lower towards the 38.2% retracement level at 1.3250. This is just above our 1.31 year-end target. The risk to our bearish view is a move back above the recent high at 1.3698.”
“In EUR/AUD, MS notes that it has hit the 38.2% retracement level of the move from the 1.16 low in July-12 to 1.58 high in Jan-14, at 1.42.”
"We now look for moves lower, initially towards 1.40, signalling a further move to the 61.8% retracement at 1.32."
“Finally in EUR/CAD, MS notes that it has developed a similar pattern to EUR/AUD.”
"EUR/CAD is approaching the 38.2% retracement level at 1.4263, which is also just above the bottom end of the current trend channel. A move below here would give a further bearish signal."
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