EUR: bullish forecasts from Crédit Agricole

EUR: bullish forecasts from Crédit Agricole

2020-12-15 • Updated

Strategists at Crédit Agricole expect the USD will continue falling, while the EUR will keep rising in the coming months. The bank named the greenback as the largest loser from the global recovery. Indeed, the US dollar has been dipping for almost half a year already. As a result, EUR/USD has broken through the key psychological level of 1.2000. It’s a natural thing that investors take out their capital from safe-havens assets such as the USD and flow them into assets with higher returns as the global economy is entering the new growth phase. 

Undervalued EUR vs overvalued USD

Crédit Agricole considers that the greenback is overvalued against its major peers as the USA has fiscal and trade deficit. “Global investors could thus start hedging against future depreciation of the currency and sell the USD forward”. At the same time, Crédit Agricole models demonstrate that the euro is undervalued. 

Forecast

According to Crédit Agricole, "recovering global growth and trade will lead to increased selling of USD by global corporates as they convert their growing exports proceeds into their home currencies”. They foresee EUR/USD to reach 1.2500

Technical tips

EUR/USD is touching the 50-period moving average, which has been supporting the pair since the start of November. Therefore, the price is unlikely to break down, but if it does, the support zone of the recent lows of 1.2100-1.2110 will limit the further falling. When EUR/USD approaches the resistance of 1.2170, it may meet the fresh selloff ahead of the breakout. The next resistance will be at 1.2200. 

EURUSDH4.png

TRADE NOW

Similar

What Can Drive Oil below $90 a Barrel?
What Can Drive Oil below $90 a Barrel?

The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.

Latest news

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera