EURUSD traded above 1.1800 on Tuesday for the first time since September 2021. The 13.4% rally YTD has occurred in a relatively orderly manner for such a large magnitude move. Although some might flag that it is becoming increasingly stretched from a technical perspective, the fundamentals suggest that it has legs to reach 1.2000 in the coming months and potentially push even higher still.
We review the rationale behind our view from both the EUR and USD legs of the trade, as well as providing some of our favourite trade expressions to capture this move.