26 Nov 2013
Flash: EUR/USD at risk of further retracements - ANZ
FXstreet.com (Barcelona) - Tim Riddell, Head of Global Markets Research at ANZ, favours broad range trading in EUR/USD, with short term bias skewed to the downside.
Key Quotes
"The fall below 1.3650 undermined potential for a test of the 1.4000 and has re-instated the favoured technical bias for broad range trading. It should again be noted that the 1.3835 high coincided with a 61.8% retracement of the slide from the 2011 high."
"Although 1.3300 held, the turn in weekly momentum and the less dynamic style of recent rebounds leaves EUR at risk of further and deep retracements of the range of the past 12 months into early 2014. Sharp rally above 1.3700 needed to reduce this bias."
"The faltering or rebounds around 1.3560 and the overlapping nature of the recent bounce suggest that, even if interim support in the 1.3380 holds, that further rebounds will also be seen as corrective and again falter in the 1.3560-1.3635 retracement zone."
"A fall below 1.3380 would push aside potential for a secondary (but corrective) rebound and trigger another deep slide through 1.3295 (50% of the past year’s range) to test 1.3165 and potentially a retest of 1.3100."
Key Quotes
"The fall below 1.3650 undermined potential for a test of the 1.4000 and has re-instated the favoured technical bias for broad range trading. It should again be noted that the 1.3835 high coincided with a 61.8% retracement of the slide from the 2011 high."
"Although 1.3300 held, the turn in weekly momentum and the less dynamic style of recent rebounds leaves EUR at risk of further and deep retracements of the range of the past 12 months into early 2014. Sharp rally above 1.3700 needed to reduce this bias."
"The faltering or rebounds around 1.3560 and the overlapping nature of the recent bounce suggest that, even if interim support in the 1.3380 holds, that further rebounds will also be seen as corrective and again falter in the 1.3560-1.3635 retracement zone."
"A fall below 1.3380 would push aside potential for a secondary (but corrective) rebound and trigger another deep slide through 1.3295 (50% of the past year’s range) to test 1.3165 and potentially a retest of 1.3100."