EUR/USD: Close above 1.2402 to point towards 1.2555 – CitiBank

Analysts at Citibank see the EUR/USD pair moving higher over the next months. They forecast EUR/USD at 1.24 in a three months period and at 1.27 in a six to twelve month horizon. 

Key Quotes:

“Stronger FDI and reserve manager buying in the EA than anticipated could push EUR higher. Recent IMF data suggest that reserve managers continue to diversify away from USD holdings. If the US recovery is hampered by rising cases and renewed local lockdowns, this could be USD negative and EUR positive.”

“EURUSD drifted lower to test the rising channel base in the short term chart at 1.2242-47, which seems to be holding pretty nicely. If the channel base continues to hold as a good support, that should push the pair higher towards the top of the channel at 1.2402. A close above this level would suggest the potential for renewed gains towards the Feb 2018 high at 1.2555 and fibo 0.618 at 1.2598.”