EUR/USD: Break higher is justified but further gains more limited – MUFG

Economists at MUFG Bank suspect EUR/USD may be returning to the range of 1.1000-1.1500.  

How high can this move go? 

There are good reasons to believe this move higher for EUR/USD could mark a break into a new higher trading range – say between 1.1000-1.1500. 

Further gains though could become more constrained given still weak Eurozone growth and the potential for the ECB to refrain from hiking in September.

See: EUR/USD appears a bit overstretched in the short term and could face a correction this week – ING