BTMU FX Strategy Research believes EUR/USD break and settling above 1.1714 intra-day high from 2015, which takes EUR/USD to levels that prevailed before the formal QE announcement by the ECB in January 2015 is significant.
"Just like in H2 2014, EUR/USD moved well in advance of the formal announcement of QE, we would describe the current move as the well-in-advance move of the formal end to QE, expected by the market by around year-end.
This fundamental shift probably means EUR/USD will now settle in a new 1.1500-1.2500 trading range going forward over the coming year," BTMU argues.
In the near-term, BTMU argues that an escalation of a debt ceiling crisis would probably be enough to see EUR/USD keep climbing.
"That to us points to the 1.2000 level being a realistic short-term target by the end of this quarter," BTMU adds.
Source: BTMU ResearchOriginal Article
