Merrill Lynch believes that the Dollar should strengthen on the Forex by the end of the year and proposes targets on a few pairs to monitor.
«We see several technical signals on different time horizons in favour of an increase of USD on the Forex in Q4 2017.
It is not yet clear whether this is a rebound in Q4 or the beginning of a bullish trend more robust.
However, we believe that the risk/benefit will always encourage the purchase of USD, especially if elements favourable to USD materialize by the end of the year. (Rate increase from the Fed and positive progress has been made in tax reform, for example).
We still expect EUR/USD to 1.15, and we are strengthening now the possibility to find the 1.1320. AUD/USD corrected down to the breakout point of its triangle to the bottom of 0.76. Technical analysis suggests more upside in USD/JPY towards 115, particularly if the pair breaks more decisively to the trend line at 112.66. «