5 Jun 2015
EUR/USD likely to turn lower – BAML
FXStreet (Barcelona) - MacNeil Curry, CFA, CMT, Technical Strategist at BofA-Merrill Lynch, expects EUR/USD to turn lower as bund yields turn back, and further recommends to wait for a break below 1.0870 to go short on the pair.
Key Quotes
“With Bund yields turning, €/$ is likely to stall out and turn lower; particularly given its proximity to almost year-long trendline resistance at 1.1393. Against here, the larger downtrend for 1.0283/1.0000 remains on firm footing.”
“However, for now, we recommend staying away until a break of 3m channel support at 1.0870. This would confirm an end to the counter-trend price action and herald in a return to a trending environment.”
Key Quotes
“With Bund yields turning, €/$ is likely to stall out and turn lower; particularly given its proximity to almost year-long trendline resistance at 1.1393. Against here, the larger downtrend for 1.0283/1.0000 remains on firm footing.”
“However, for now, we recommend staying away until a break of 3m channel support at 1.0870. This would confirm an end to the counter-trend price action and herald in a return to a trending environment.”