EURUSD - Limited but a potential for Upside!
-It appears that the euro’s role as a funding currency is curbing the EUR/USD upside in the current market environment, as investors jump back into risk-on bets
-With the eurozone growth outlook already partly compromised by restrictions in Germany and other eurozone countries, and the European Central Bank sticking to a broadly dovish tone, the euro may be facing more pressure regardless of Omicron-related sentiment
-We could see EUR/USD re-test 1.1200 this week
-But before that drop, we may witness some rise to the 1.12700 area.
LONG TERM TARGET: 1.12
-With the eurozone growth outlook already partly compromised by restrictions in Germany and other eurozone countries, and the European Central Bank sticking to a broadly dovish tone, the euro may be facing more pressure regardless of Omicron-related sentiment
-We could see EUR/USD re-test 1.1200 this week
-But before that drop, we may witness some rise to the 1.12700 area.
LONG TERM TARGET: 1.12