EUR/USD: A breakout higher is justified, but further gains are more limited

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Economists at Bank of Tokyo-Mitsubishi UFJ believe that EUR/USD may return to the 1.1000-1.1500 range.

How high can it go?

There are good reasons to believe that this move higher in EUR/USD could mark a breakout of a new higher trading range – say between 1.1000-1.1500.

However, further gains in EUR/USD are likely to be more limited given that growth in the euro zone remains weak and the European Central Bank may not raise interest rates in September.