Rabobank predicts that the EUR/USD exchange rate will rise to 1.12 within a year. Analysts note that the recent surge in EUR/USD has slowed, yet interest from buyers has increased since it fell below 1.0800.
They foresee a period of weakness lasting 1 to 3 months before the currency pair resumes its upward trend. The outlook suggests a cautious approach in the near-term, but an eventual recovery is expected.
Expected Movement In Eurusd
Rabobank analysts anticipate that EUR/USD will climb to 1.12 within the next 12 months. Although recent upward momentum has eased, demand has risen following its dip under 1.0800. While this reflects a temporary halt in its climb, it also highlights buyers stepping in at lower levels.
A downturn is expected to last between one and three months before the pair starts rising again. This suggests that movements in the short term may not be straightforward, which requires careful positioning. Any attempts to push higher could meet resistance, yet the broader trajectory points to eventual gains.
There are several factors at play here. When a currency pair struggles to extend its rally but continues to find interest at key levels, it indicates a period where traders reassess their outlook. Short-term sellers may gain control, but longer-term buyers remain present, preventing any rapid decline. Based on this, markets could experience fluctuations in the coming weeks.
Key Influences On Price Action
In light of this, we must stay alert to external pressures that could influence price action. Economic data, central bank remarks, and sentiment shifts all have the potential to alter expectations. If uncertainty increases, temporary pullbacks might become more pronounced. However, if underlying demand persists, eventual strength is likely to follow.
A measured strategy is advisable. While the current setup signals caution for now, the long-term picture remains intact. The next few months may test patience, but the broader outlook suggests that positioning for future upside remains justified.
