MUFG sees EUR/USD overvaluation and energy risks capping upside
MUFG says EUR/USD is capped near its 200-day moving average at 1.1630 and looks 2.5%-3.0% overvalued in the bank’s short-term framework.
EURUSD
EUR/USD is struggling to break above its 200-day moving average around 1.1630, according to MUFG’s Halpenny.
The bank’s short-term assessment puts the euro roughly 2.5% to 3.0% above fair value, suggesting the pair is stretched relative to near-term fundamentals.
MUFG also flags energy risks as an additional factor weighing on the euro’s outlook, reinforcing the view that upside against the US dollar is limited.
Source: FXStreet Forex News