Bank of America Merrill Lynch is saying a lot of the same things I have been writing here.
“For EUR/USD, long term downside targets are seen to the 1.0588/1.0283 area,” BofA projects.
Along with these long-term targets, BofA notes the month of January is historically the best month of the year for the greenback (and the worst for EUR/USD).
As such, BofA recommends that EUR/USD near-term bounces should be seen as opportunities to go short.
“Any gains should be limited to 1.2000/1.1977, 1.2042/1.2047, worst case the confluence of old support, now resistance at 1.2233/1.2235 (200m, 4.5yr t/line),” BofA projects.
Meanwhile, BofA remains bullish on gold noting that while the advance has been very choppy, the repeated pattern of higher lows from the Nov-07 low says that gains should extend.
“We expect a test and break of 1241/1255 resistance which would clear the way for the Jul’13 high of 1345 and potentially beyond,” BofA adds.
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