BofA argues that with Bund yields turning,the pair is likely to stall out and turn lower; particularly given that it has been capped so far below an almost year-long trendline resistance at 1.1393
“Against here, the larger downtrend for 1.0283/1.0000 remains on firm footing. However, for now, we recommend staying away until a break of 3m channel support at 1.0870,” BofA advises.
“This would confirm an end to the counter-trend price action and herald in a return to a trending environment,” BofA adds.
