Citigroup predict 1.0450 for EUR/USD

During the last big bearish trend of the EUR/USD an upward correction is observed for the period from August 1997 to October 1998, when prices jumped from 1.0433 to 1.2161. This period took 14 months. It must also be noted that one of the most important events in 1998 was made at that time historic high on the bond market of the United States, according to the Citigroup.

This time we had upward correction from 1.0458 to 1.1714. A few weeks ago the bank had been of the opinion that we are still waiting to move up, and it will be an attempt to test 1.2000, but the pair failed to hold above 1.1500 and seems, that we have a change in the trend. A minimum of 1.0458 was reached in March 2015 and since then passed 14 months. At the same time the government bond market in the US also occur conversion.

There are clear similarities between this movement now and 1998. The correction of EUR/USD and market behavior of bonds in the United States then and now look the same, said from the bank.