Morgan Stanley maintains short positions EUR / USD, as short-term trading recommendations, with a mark of 1.3620, stop at 1.3700, targeting 1.31.
“Restoring EUR remained limited, and we maintain our” bear “forecast, taking into account the weakness of the leading indicators. The results of the poll in the business and consumer sectors of the European Monetary Union (EMU), the output of which is expected tomorrow, will also be important. The weakness of these indicators will speak in favor of our “bearish” outlook for EUR, »- says MS.
“We expect further growth in EURUSD limited to the 200-day moving average at 1.3670. Pullback below 1.3600 will return to focus on the lower range around 1.3500, which is now a medium-term reference point “- adds MS.
MS also maintains short positions on USD / JPY, as short-term recommendation, with a mark of 102.20, 102.70 and a stop at the target at 98.
“The USDJPY maintains downward pressure testing the lower boundary of the range and 200-day moving average at 101.70. Continued downward movement will give a “bearish” signal, opening the way to eventually decline to 100.70. We maintain a downward aim at around 98.00, “- explains MS.
“Interestingly, the JPY is still supported, despite recent data from the Ministry of Finance, saying that Japanese investors are again buying foreign bonds to hedge the currency,” – adds MS.
