FXStreet (Łódź) - Shaun Osborne and Martin Schwerdtfeger, FX Strategista at TD Securities stress they had been negative on the EUR outlook since the May sell-off in EUR/USD and break under the double top neckline trigger at 1.3676, which has served as an effective cap on the market since the initial breakdown.
"The fact that resistance has contained EUR rebounds rather serves to confirm the influence of the formation on spot’s direction we think."
"The double top at 1.3965 (and the break under the neckline trigger) targets a drop back to the upper 1.33s—our long-held target for a downside extension."
"Trend momentum is negative on the shorter-term (6-hour and daily) studies."
"Even with spot reversing from the intraday low and closing unchanged on the day Friday (producing a “doji” candle on the daily chart), we expect only limited near-term gains and more pressure on minor support in the high 1.34s this week."