EUR/USD faces downside risks – Danske Bank

Chief Analyst at Danske Bank Allan von Mehren noted the pair could test lower levels on a positive surprise from today’s US Payrolls.

Key Quotes

“EUR/USD tentatively appears to have established a new lower bound with key support around 1.1914 (9-Jan low) and 1.1900”.

“We still think the USD positives dominate near-term and would not rule out another leg lower in EUR/USD if we get a strong US job report today”.

“Notably our 3M forecast for the cross (standing at 1.23) is at risk in the current environment, but we continue to stress that the cross holds decent upside potential on a 12M horizon”.