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.



Key Quotes:



“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”.



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Heavy Event Risk in Jobs Data, Rate Decision Will Confront Summer Trading

  2. Forex News

    US Dollar as ‘Data Dependent’ as the Fed as NFPs Approach

  3. Forex News

    Strategy Video: Am I Over or Under Trading, And How Do I Correct It?

  4. Forex News

    Nonfarm Payrolls coming up: expectations -TDS

  5. Forex News

    EUR/USD regains 1.10, Payrolls eyed

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!