Sell EUR/USD at 1.0800: Credit Agricole
Any further strength in the EUR/USD exchange rate over coming days should take it into selling territory say strategists at France’s Credit Agricole (CACIB).
According to analysts, 1.0800 is a key level for the pair which has been revisited twice since Donald Trump’s tenure as president, only to be repulsed on the two previous occasions.
Credit Agricole think the same selling pressures will emerge this time around.
"Any rally in EUR/USD to 1.08 and above should, in our view, offer an attractive opportunity to short the pair anew," CACIB advise clients.
Analysts see a prime opportunity to sell the Euro coming after the Eurozone’s main economic data event of the week, the release of Purchasing Manager surveys from financial information provider Markit on Friday, March 24.
The recent strong form shown by the Eurozone in recent surveys suggests more of the same so the Euro could pop higher into the 1.0800 shorting zone.
However CICIB are of the view such a bounce from the data is unlikely to be sustainable saying that although they expect business activity to continue improving at a healthy pace, such an outcome is unlikely to have any meaningful impact on ECB monetary policy expectations and/or the single currency.
CICB is not the only bank homing in on 1.0800, Commerzbank too highlighted 1.0829 as a key level and that strong selling pressure may emerge just below it.
