Bank of America Merrill Lynch is still of the view that the USD is in the midst of a short term correction lower, but one that should be seen as an opportunity to add to longs. "Looking at EUR/USD, the pair can squeeze higher to 1.3057 before a resumption of the larger downtrend, but this bounce should be sold for a push to 1.2787/1.2694 and below," BofA projects. In contrast to its high conviction on a lower EUR/USD, BofA remains unconvinced of the downside potential for AUD/USD. "The price action from the Jan lows of 0.8658 says the trend is higher for a push to and through the Jul highs at 0.9506," BofA ... (full story)