EUR/USD gains faltered as a higher range is being defined - Westpac

Tight rising channel support has been broken for EUR/USD pair, but minimal retracement and prior consolidation support have held so far, according to Tim Riddell, Research Analyst at Westpac.

Key Quotes

“Interim rebounds are likely to struggle in front of 1.20. A secondary retracement to1.1480-00 appears more likely to be the dominant move as a range is defined.”

“Weekly

• The roll-over in weekly momentum into October suggests that at least an interim top has formed. Even if another rebound develops, it should be short lived
• Weekly price action appears to have turned in favour of broad EUR consolidation through the much of 4Q as a new (and higher) range is defined”

“Monthly

• Supportive momentum is faltering but has not, as yet, turned. Potential for a longer term base appears to have been confirmed by the strong gains during 3Q’17
• A broad consolidation is now favoured but with an upwards bias which implies that retracement pullbacks should be relatively contained”