Citi EUR outlook – maintains a bearish bias and a sell-on-rallies bias.

This from Citi is via the folks at eFX.

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Citi discusses the EUR outlook and maintains a bearish bias and a sell-on-rallies bias.

“CitiFX Strategy remains overall bearish EUR in light of Eurozone headwinds and broader Dollar strength. In the very short-term, however, should PM Draghi stay, we think that offers modest short-term support for EUR before we can focus on the ECB, while the path of least resistance for USD in the short-term could be down,” Citi notes.

“NY traders are biased to fade EURUSD rallies but caution that a short-term push higher towards 1.0341 (previous breakdown to the topside) could be seen. If price action closes above triple resistance between 1.0350-1.0362 (May 2022 low, June 2022 low, and 61.8% Fibonacci respectively), CitiFX Technicals says a test of resistance between 1.0459-1.0526 (76.4% Fibonacci and five-month descending channel top) could be next,” Citi adds.