27 Sep 2013
Flash: EUR/USD, bounces may allow 1.40 - ANZ
FXstreet.com (Barcelona) - While the impulsiveness of the latest EUR/USD rebound post FOMC could allow for a push towards declining long-term resistance around 1.4000, the broader bias, according to ANZ FX Strategist Tim Riddell, is of 1.25-1.40 consolidation pattern formed.
Riddell adds: "Weekly momentum may be supportive, but it is also range bound (so really neutral). What will be critical to both the shorter term patterns and the bias for a broad consolidation profile will be any sign that the current surge from 1.3100 may falter. A slip below 1.3350 could trigger an unravelling of gains and possibly even a full retracement of this year’s range."
Riddell adds: "Weekly momentum may be supportive, but it is also range bound (so really neutral). What will be critical to both the shorter term patterns and the bias for a broad consolidation profile will be any sign that the current surge from 1.3100 may falter. A slip below 1.3350 could trigger an unravelling of gains and possibly even a full retracement of this year’s range."