4 Dec 2014
EUR/USD mid-term risk to the downside – UOB
FXStreet (Barcelona) - The UOB Group team sees the EUR/USD break of 1.2355 shifting the mid-term risk to the downside again.
Key Quotes
“The break below last month’s low of 1.2355 suggests that the mid-term pressure has shifted to the downside again. However, patchy downward momentum indicates that any further down-move could face considerable support at 1.2230 which also appears to be the bottom of a falling wedge formation.”
“That said, the immediate risk is clearly on the downside and short-term rebound should hold below 1.2390 but only a break back above the now very strong resistant at 1.2475 would indicate that a low is in place. Otherwise, break of 1.2230 would open the door for a move towards the 2012 low of 1.2050.”
Key Quotes
“The break below last month’s low of 1.2355 suggests that the mid-term pressure has shifted to the downside again. However, patchy downward momentum indicates that any further down-move could face considerable support at 1.2230 which also appears to be the bottom of a falling wedge formation.”
“That said, the immediate risk is clearly on the downside and short-term rebound should hold below 1.2390 but only a break back above the now very strong resistant at 1.2475 would indicate that a low is in place. Otherwise, break of 1.2230 would open the door for a move towards the 2012 low of 1.2050.”