MUFG has been riding the recent wave of EUR/USD weakness. The pair bounced back this week but is still below their entry price and they maintain that trade, while adding a short in USD/BRL (spot ref 5.2200) with a target at 4.9000 and a stop at 5.4500. The stop for the EUR/USD trade is 1.0875 with a target of 1.0350.
“We are recommending a short USD/BRL trade idea to reflect our growign confidence that Chian’s economy is on track to bounce back more strongly than expected at the start of the year, ” MUFG writes.
“We are maintaining our short EUR/USD trade idea. That pair has remained at lower loevels over the pas tweek although has lost some downward momentum. We still see room for the pair to fall back closer towards support from the 200-day moving average that comes in at around 1.0330,” MUFG adds
For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.