EUR/USD, technically, sell on rallies - TDS

By FXstreet.com | Updated August 25, 2014 AAA

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”.



Related Forex Analysis
  1. EUR/USD continues to ignore peripheral spreads - SG
    Forex News

    EUR/USD continues to ignore peripheral spreads - SG

  2. EUR stages a strong rebound - UOB Group
    Forex News

    EUR stages a strong rebound - UOB Group

  3. Fresh demand expected for EUR/USD on 1.25 level breach – FXStreet
    Forex News

    Fresh demand expected for EUR/USD on 1.25 level breach – FXStreet

  4. EUR/USD Surged Higher Last Session
    Investing

    EUR/USD Surged Higher Last Session

  5. EUR/USD Risks Larger Rebound on Dismal U.S. Durable Goods Orders
    Forex News

    EUR/USD Risks Larger Rebound on Dismal U.S. Durable Goods Orders

Trading Center