FXStreet (Bali) - According to TDS FX Strategists, technical factors continue to suggest risks are geared towards a drop back to the upper 1.33 area.

Key Quotes

"From a technical point of view, EURUSD retains a negative/defensive undertone on the short-term chart, even if the market has moved more or less sideways for most of the June month."

"Firstly, what we view as a double top signal (two tests of 1.39+ and the break under the intervening low at 1.3666) remains intact; the formation suggests a measured move drop to the upper 1.33 area in the next 2-3 months."

"Secondly, spot is trading below all the major daily MA studies, which are slowly rolling over negatively (40-day MA below the 100-day MA and nearly crossing the 200-day MA)."

"Thirdly, trend momentum signals are still—just—bearishly aligned on the daily and weekly studies, suggesting spot will struggle to rally from here at the moment."

"We spot key resistance at 1.3660/70 now—breakdown point from the above-mentioned double top. Short-term support is 1.3575/80 and below here should see the 1.3500/10 area quickly retested. We prefer to look to sell rallies in the upper 1.36s."

Related Articles
  1. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  2. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  3. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  4. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  5. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  6. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  7. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  8. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  9. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
  10. Forex News

    How The Forex "Fix" May Be Rigged

    When it comes to forex, some types of "fixes" are legal. But some really aren't.
RELATED TERMS
  1. No results found.

You May Also Like

COMPANIES IN THIS ARTICLE
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!