22 Aug 2013
Flash: EUR/USD remains at risk for slip back to 1.3050 – ANZ
FXstreet.com (New York) - The broad EUR/USD 1.25-1.37 range persists – recent gains continue to appear relatively impulsive and could suggest an early and full test of broader range resistance in the 1.3700 area, notes Tim Riddell, Head of Global Markets Research at ANZ.
Key quotes
“Interim corrections have been tightly contained, but such risk persists and any slippage now below 1.3270 could rekindle the potential for a slide back towards 1.3050.”
If current firmness persists and EUR remains above 1.3315, pressure will build for an early test of the 1.3500 area, but should still be seen in the context of broader range defining.
“Although short-term price action remains firm, the broader bias (and wave count) suggests that current gains are near to completing an interim bout of EUR strength within a broader corrective pattern. Any interim signs of faltering will therefore be seen as signaling a frustrating pullback within protracted consolidation patterns that could continue into year-end.
This profile suggests that moves towards the 1.35-1.37 area should be seen as bull-traps, or selling opportunities, as the range defining continues.”
Key quotes
“Interim corrections have been tightly contained, but such risk persists and any slippage now below 1.3270 could rekindle the potential for a slide back towards 1.3050.”
If current firmness persists and EUR remains above 1.3315, pressure will build for an early test of the 1.3500 area, but should still be seen in the context of broader range defining.
“Although short-term price action remains firm, the broader bias (and wave count) suggests that current gains are near to completing an interim bout of EUR strength within a broader corrective pattern. Any interim signs of faltering will therefore be seen as signaling a frustrating pullback within protracted consolidation patterns that could continue into year-end.
This profile suggests that moves towards the 1.35-1.37 area should be seen as bull-traps, or selling opportunities, as the range defining continues.”