UBS believes that the decline in EUR/USD will again be limited on Forex and prefer to buy.
«A low unexpected result of the major political parties (the lower for CDU/CSU since 1949 and since its existence for the SPD) and the rise of AfD, have somewhat different EUR/USD – with an opening on a gap of about 50 pips to the downside, but the decline from the peaks to the 1.20 was already initiated before the weekend. The overall movement thus remains quite ordered.
Is this just a pause in the rally of EUR/USD and the opportunity to buy ? The data were again strong on Friday and it seems that the recovery is strengthening. From a technical point of view, a solid support comes in at 1.1860/70 (channel coming in April), but we prefer to buy already around 1.1900 today. «