EUR/USD keeps the positive momentum – Westpac

Strategists at Westpac have suggested that the upside stance in the pair still remains intact.

Key Quotes

“Jettisoning downbeat EUR view in the wake of the recent very soft Q2 US GDP growth update and related to that EUR’s rally through key resistance levels near 1.1150/1.1200”.

“EUR growth hardly sets the world alight either and ECB staff are sure to revise prospects lower in their Sep projections, but the negative Q2 US growth surprise along with downward revisions showing just 1% average US growth in the last 3 quarters will prove the bigger theme, dealing a nearly fatal blow to Sep FOMC tightening hopes. EUR can trade to 1.14-1.15 near term”.

“Price action positive, bullish engulfing pattern on the weekly charts. Some resistance around 1.1210/30 but momentum looks supportive”.