8 Aug 2013
Flash: EUR/USD correction imminent – ANZ
FXstreet.com (New York) - Head of Global Markets Research Tim Riddell at ANZ postulates the short-term outlook of the EUR/USD.
Key quotes
“The EUR/USD broad 1.25-1.37 range persists – note that the Head and Shoulders pattern risk proved to be unfounded (they’re only powerful as reversal patterns). Current gains look relatively impulsive, but an interim correction, back towards 1.3050, is likely to develop. A slip now below 1.3265 could begin the correction (confirmed below 1.3225). If support proves to be solid at 1.3050, another push towards 1.3500 may develop as range defining continues.”
“Despite pockets of apparent impulsive price action, the broader profile remains that of a likely protracted consolidation pattern into year-end. The near term show of strength could trigger an early push towards the upper bounds of the range, but the favored profile is for failure in front of 1.35 and for an interim flush to define range support – beware bull-traps.”
Key quotes
“The EUR/USD broad 1.25-1.37 range persists – note that the Head and Shoulders pattern risk proved to be unfounded (they’re only powerful as reversal patterns). Current gains look relatively impulsive, but an interim correction, back towards 1.3050, is likely to develop. A slip now below 1.3265 could begin the correction (confirmed below 1.3225). If support proves to be solid at 1.3050, another push towards 1.3500 may develop as range defining continues.”
“Despite pockets of apparent impulsive price action, the broader profile remains that of a likely protracted consolidation pattern into year-end. The near term show of strength could trigger an early push towards the upper bounds of the range, but the favored profile is for failure in front of 1.35 and for an interim flush to define range support – beware bull-traps.”