18 Nov 2013
Flash: Stay EUR/USD bearish and look for selling opportunities - TDS
FXstreet.com (Barcelona) - Despite EUR/USD has only seen moderate selling interest around 1.35, the nature of the rally still looks corrective, which in view of Shaun Osborne, Chief FX Strategist at TDS, suggests a consolidation ahead of another leg lower.
Key Quotes
"Resistance in the upper 1.34 area (former high/low resistance and trend channel base) plus the 38.2% retracement resistance of the 1.38/1.33 drop at 1.3504 should be a firm block on further near-term gains. We still rather think spot should be heading lower towards 1.30/1.32. Weakness below 1.3440 should be sufficient to refresh short-term bearish momentum."
"The early November bear reversal from the low 1.38 area remains intact and the break below trend support confers a weak look to the medium-term chart, even if this may also allow for a retest of the mid 1.35s (note 50% Fibonacci retracement resistance on the daily chart at 1.3566 above)."
"EUR/USD remains heavily overbought, according to the medium-term slow stochastic oscillator signal, which is now rolling over bearishly. This should further limit the EUR’s ability to recover or strengthen significantly from here. Stay bearish and look for selling opportunities."
Key Quotes
"Resistance in the upper 1.34 area (former high/low resistance and trend channel base) plus the 38.2% retracement resistance of the 1.38/1.33 drop at 1.3504 should be a firm block on further near-term gains. We still rather think spot should be heading lower towards 1.30/1.32. Weakness below 1.3440 should be sufficient to refresh short-term bearish momentum."
"The early November bear reversal from the low 1.38 area remains intact and the break below trend support confers a weak look to the medium-term chart, even if this may also allow for a retest of the mid 1.35s (note 50% Fibonacci retracement resistance on the daily chart at 1.3566 above)."
"EUR/USD remains heavily overbought, according to the medium-term slow stochastic oscillator signal, which is now rolling over bearishly. This should further limit the EUR’s ability to recover or strengthen significantly from here. Stay bearish and look for selling opportunities."