EUR/USD forecast at 1.17 in 6-12 months – CitiBank

Analysts at Citibank see the EUR/USD moving to the upside over the next months. They forecast EUR/USD at 1.14 in three month and at 1.17 in six to twelve. 

Key Quotes:

“Renewed or increased political uncertainty from Italy, Brexit or elsewhere may put downside risks on EUR.”

“EA ‘break-up’ risk premia has now markedly been reduced.The key inflection point for EA risk premia was the good news on the EU recovery fund. Euro denominated risk assets have traded much more robustly. Besides, the ECB also upsized and lengthened its PEPP to defend its mandate. It is synchronised monetary and fiscal support that have proven to yield the most “positive“ results during the recovery, favoring EUR.”

“EURUSD’ RSI stay at neutral level. The pair may trade between 1.1168-1.1422 in the short term, with next support and resistance at 1.1050 and 1.1495 respectively.”