2 Feb 2015
Stay bearish EUR/USD – BAML
FXStreet (Barcelona) - The Bank of America, Merrill-Lynch Team suggests remaining bearish on EUR/USD as the upside correction looks to be complete, expecting a break below 1.1224 to signal the resumption of the bearish trend for the pair.
Key Quotes
“The €/$ correcting higher over the past four days looks to be complete (forming a zig-zag for those who follow Elliott Wave analysis) and the larger bear trend is set to resume.”
“A break of 1.1224 (Jan-27 low) would confirm a resumption of the larger bear trend for 1.10000 (round number), ahead of 1.0765 (Sep'03 lows) and eventually below.”
“A move above 6wk trendline resistance (now 1.1427) would be the first sign of trouble for €/$ bears, but it would take a break of 1.1679 (Jan-21 low) to point to a near-term base and turn in trend. To be clear, we do not expect a break of either of these levels, but the risks must be highlighted.”
Key Quotes
“The €/$ correcting higher over the past four days looks to be complete (forming a zig-zag for those who follow Elliott Wave analysis) and the larger bear trend is set to resume.”
“A break of 1.1224 (Jan-27 low) would confirm a resumption of the larger bear trend for 1.10000 (round number), ahead of 1.0765 (Sep'03 lows) and eventually below.”
“A move above 6wk trendline resistance (now 1.1427) would be the first sign of trouble for €/$ bears, but it would take a break of 1.1679 (Jan-21 low) to point to a near-term base and turn in trend. To be clear, we do not expect a break of either of these levels, but the risks must be highlighted.”