EUR/USD: Range trading will persist - Westpac

Tim Riddell, Research Analyst at Westpac, explains that daily momentum appears to be breaking lower from neutral levels as EUR risks an interim flush to retest the 1.0350-1.0400 area and even though potential of a deeper flush should not be ignored, but the current bias is that range trading will persist and so EUR ought to base and rebound into month end.

Key Quotes

“Weekly

• Slippage below 1.0300 would heighten risks of and early downside break, but bias is for another interim squeeze before the range genuinely breaks for a flip lower
• Weekly momentum is supportive, but faltering. A weekly close above 1.0650 could refresh momentum support and allow for an interim squeeze to mid-range”

“Monthly

• EUR/USD continues to consolidate (centred around 1.10), but with a bias for an eventual range flip to the downside before EUR can form a longer term base
• Although monthly momentum is neutral, it is also open to downside risks. The triangle-like consolidation remains in place, but prone to a downside flip”