High conviction long EUR trade - Westpac

Analysts at Westpac suggested a long EUR/USD  position 1.1220, stop 1.1095. 

Key Quotes:

"Ditching cautious EUR view after the recent soft Q2 US GDP update and related to that EUR’s rally through key resistance levels 1.1150/1.1200. 

EUR growth hardly sets the world alight either and ECB staff are sure to revise prospects lower in their Sep projections, but the negative Q2 US growth surprise along with downward revisions showing just 1% average US growth in the last 3 quarters will prove the bigger theme, dealing a nearly fatal blow to Sep FOMC tightening hopes. 

EUR can trade to 1.14-1.15 near term. Q3 US GDP could print 3%+ as the steep inventory rundown turns course but that will come too late (late Oct) to make a case for a 21 Sep FOMC rate hike. Chair Yellen unlikely to upset markets when she speaks at Jackson Hole 26 Aug."