Goldman Sachs favors a tactical approach to buying EUR/USD on dips, with a focus on broader USD weakness driving the pair higher despite a lack of strong economic support for the euro.
Key Points:
Tactical Buy Levels:
Traders are looking to add to EUR/USD positions on dips back towards 1.1030, with a target of reaching the 2023 highs just below 1.1140.
Market Sentiment:
The strategy is driven by expectations of broader USD weakness rather than strong economic fundamentals in the eurozone.
Downside Risks:
A significant downside surprise in Thursday’s European PMIs could challenge this outlook, though Goldman Sachs does not expect such an outcome.
Conclusion:
Goldman Sachs recommends a tactical approach to buying EUR/USD on dips, capitalizing on broader USD weakness, with an initial focus on 1.1030 as a buying level and a target of 1.1140.
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This article was written by Adam Button at www.forexlive.com.
