EUR/USD: Barclays sells pair, targets 1.0710

EUR/USD: An alternative to hedge risks related to the Brexit.

We recommend selling EUR/USD via options. We continue to believe that Brexit can be a risk that is as significant to the EU as it is for the UK.

Our bearish bias regarding the EUR/USD - from a technical standpoint - was encouraged by the break of support near 1.1060. The weekly close below 1.11020 encourages us to aim for 1.0850 and then 1.0710. We will become even more bearish if 1.0710 gives way and then we will aim for 1.0460 for followed by 1.0215.