EUR/USD lost the 1.20 level. While it hasn’t been able to regain it, the pair isn’t falling too fast either. What’s next? Here are four opinions.

Here is their view, courtesy of eFXnews:

EUR/USD: ‘Beware Of Bull Trap Risks’: Key Levels To Watch – BofAML

Bank of America Merrill Lynch Research discusses EUR/USD technical outlook and warns from bull trap risks.

“As with all breakouts, traps or whipsaws are a risk. Many eyes seem to be watching the EUR/USD and this 1.2092-1.21 area.

If the following price action occurs, it could be a bull trap.

 If we soon see a weekly close above 1.21 followed by an adjacent weekly close below 1.20, then a technical decline would be signaled,” BofAML notes. 

EUR/USD: Moved Into ‘The Upside Down’; What’s The Trade? – Nordea

Nordea FX Strategy Research discusses EUR/USD outlook and notes that the pair has moved into the upside-down, or at least into the mirror image of 2017.

“One year ago, the EUR/USD was in a strong downtrend and it had just traded at 1.0340. Almost everybody was bearish the pair and looking for a breach of parity. Positioning a year ago was heavily negative according to IMM data. We all know what happened next – the best year for the EUR/USD since 2003.

Today, EUR/USD is in a nice uptrend, EUR/USD is trading at 1.20-21. Almost everybody is bullish the pair and is looking for a 1.25 or 1.30 reading later this year. Positioning is as positive today as it was negative a year ago. We note this since it’s *ahem* not unheard of that many of these “views of the year” are reversed as early as late January,” Nordea adds.

“We advise a tight stop-loss if trying to be short the pair. A breach in of 1.21 in EUR/USD would open up for a move into the 1.23-1.26 area, which might offer a much better entry opportunities for those of a more EUR-sceptical persuasion (these levels marks multi-year downtrends since 2008 on monthly charts),” Nordea advises.