Flash: EUR/USD, support for 1.3250 in the week ahead - BBH

FXstreet.com (Barcelona) - Following the recovery from the lows at 1.2755 on July 9 to 1.3200 on July 11, the EUR/USD has been range-trading, and seem to be carving out what appears to be a flag, understood as a continuation pattern, yet Marc Chandler, Head of FX at BBH, says to be skeptical of the pattern working, arguing it is getting too close to the apex.

Key quotes

"Nevertheless, the relative strength index and the MACDs are constructive and the 5-day average crossed above the 20-day average early in the week, suggesting trend followers may be getting nervous."

"In addition, the euro finished the week well above the 100-day average (~$1.3035) and the 200-day average (~$1.3080). We see scope toward $1.3250 in the week ahead, with support in the $1.3050-80 area."