Despite believing the euro is currently overvalued, Bank of America prefers it to the US dollar, Swiss franc and Japanese yen. Â
Bank of America thinks the EUR could be supported leading up to the NATO and EU summits (June 24-27) especially if defense spending is confirmed. German infrastructure spending might also be expected to support the euro. Â
The EUR/USD holds above the 20- and 50-period EMAs at 1.1380–1.1360 and is comfortably above the 200-period EMA. The recent pull-back from 1.14930 has eased momentum slightly. Â
A close above 1.1420 could target 1.1470, then 1.1520. A sustained break below 1.1280 could neutralise the bullish bias. Â
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