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MUFG Trade of the Week: Go long EUR/USD and stay long AUD/USD

MUFG added a long position in EUR/USD (spot ref: 1.0920) to its ToTW portfolio with a target at 1.1320 and a stop at 1.0620.

“We recommend a fresh long trade idea in EUR/USD. The pair has regained bullish momentum over the past week and we see room for the recovery to extend into the new year, to today’s high above the April high just below the 1.1100 level,” he notes MUFG.

MUFG also maintains a long position in AUD/NZD, targeting a move towards 1.1200 with a stop at 1.0700.

“We maintain our long-term AUD/NZD trade view to reflect expectations of a near-term narrowing of policy divergence between the RBA and RBNZ,” MUFG added.

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