FXStreet (Guatemala) - Analysts at TD Securities explained that the EUR/USD’s weak performance last week confirms the bearish outlook for the single currency in the near-to-medium term.
“Having broke consolidation support at 1.3335 (bear wedge on the daily chart, above), we expect EUR/USD to stage a repeat of the 1.3697/1.3335 move down from the breakdown point (targets a fall to the high 1.29s)”.
“The one caveat to the short-term bearish view we have is that we don’t usually like to see big, bearish ranges (like Friday’s) after an extended move down; these sorts of signals sometimes reflect a “selling climax”, leaving little additional selling pressure to drive markets lower”.
“The “gappy” nature of the losses seen through early Asian trade today is another such signal. There is a risk of a short-term squeeze higher but we but rather think strong, bear trend momentum will keep EUR rebounds limited (high 1.32/low 1.33s) from here. We remain bearish; look to sell rallies”.