Stay Bullish USD Vs EUR & JPY; Sell A Gold Rebound - BofA Merrill
USD weakness, particularly against G10 currencies (ex the AUD) should prove limited, projects Bank of America Merrill Lynch
"Against 1.3452 in EUR/USD and 96.82 in USD/JPY, STAY bullish USD," BofA advises.
In line with this view, BofA maintains 3 tactical long USD/JPY positions from 98.00, 97.50, and 97.00 with a revised stop at 96.80, and a target at 105.80/106.
BofA also maintains a short AUD/NZD position from 1.1430, with a stop at 1.1535, and a target at 1.1092.
Meanwhile, BofA thinks that any Gold gains from here will prove temporary and should be viewed as a selling opportunity.
"The trend has turned bearish following the break of 1355, with a move below the August 2007 low at 1272, exposing the 1180, bear market low," BofA projects.