31 Oct 2013
Flash: EUR/USD squeeze within potential for 1.45 target - ANZ
FXstreet.com (Barcelona) - The strong rally in EUR/USD through 1.3500 altered the technical patterns, opening the prospect of a test of declining resistance, currently in the 1.40 area, and within potential measured moves towards 1.45, notes Tim Riddell, Head of FX Research at ANZ.
Key Quotes
"However, the broader pattern is still seen as corrective (note that the initial moves from 1.2045 to 1.3710 area labelled a,b,c). Therefore price action over the next month will prove to be critical."
"Any signs of faltering around the series of measured moves, retracements, and the downtrend in the 1.3950-1.4050 area could indicate that the rally from September’s 1.3100 low could be complete (potentially the whole series of gains from 1.2750)."
"Additionally, any slippage in the near-term below 1.3650 should cause concern, though a break of 1.3570 is needed to confirm an early failure."
Key Quotes
"However, the broader pattern is still seen as corrective (note that the initial moves from 1.2045 to 1.3710 area labelled a,b,c). Therefore price action over the next month will prove to be critical."
"Any signs of faltering around the series of measured moves, retracements, and the downtrend in the 1.3950-1.4050 area could indicate that the rally from September’s 1.3100 low could be complete (potentially the whole series of gains from 1.2750)."
"Additionally, any slippage in the near-term below 1.3650 should cause concern, though a break of 1.3570 is needed to confirm an early failure."