BofA Merrill Lynch notes as follows:With the US Treasury curve entering into bull steepening mode, the US $ is set to continue its near term correct lower. EUR/USD gains are likely to extend to 1.1267/1.1389 before renewed topping and a resumption of its long-term downtrend towards 1.0283/1.000. Meanwhile, we think GBP/USD can extend to 1.5169/1.5325 before resuming its long term downtrend to 1.4035/1.3504. US $ bulls need a EUR/USD break below 1.0713 (Mar-31 low) and GBP/USD break below 1.4750 (Apr-01 low) to say that the $ bull trend has resumed.
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