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TD Securities suggests long EUR/USD with a zero-cost risk reversal

The proposed three-month setup buys a 1.1610 call while financing it by selling a 1.11 put.

Reported · Written up by our desk · Major Pairs

FXStreet reports that TD Securities' Macro Research Insight recommends a long EUR/USD position using a three-month zero-cost risk reversal. The structure calls for buying a 1.1610-strike call and selling a 1.11-strike put.

According to the FXStreet write-up, TD Securities is looking to fade the recent EUR/USD selloff near year-to-date lows. TD Securities also points to September month-end rebalancing and softer US payrolls as catalysts, saying stretched USD uptrends are likely to consolidate.

FXStreet frames the recommendation as consistent with TD Securities' bullish year-end EUR/USD view, and includes a related note that AUD/USD was trading near two-month lows around 0.6950 following Australian CPI data.

Latest closeEUR/USD 1.122 ▼0.3%

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