3 Jul 2013
Flash: EUR/USD could face short-term squeeze – ANZ
FXstreet.com (New York) - According to Head of Global Markets Research Tim Riddell at ANZ, “We recommend caution facing a short-term EUR/USD squeeze.”
However, interim rebounds should struggle in the 1.3125-50 area before range defining slippage resumes. A close below 1.3000 is needed to reduce the risk of an interim squeeze and suggest a secondary position-flipping slide to test 1.2700 within the context of redefining the broader 1.25-1.37 range. “Once again, the head and shoulders pattern may be mentioned, but should produce little other than talk.” Riddell notes.
However, interim rebounds should struggle in the 1.3125-50 area before range defining slippage resumes. A close below 1.3000 is needed to reduce the risk of an interim squeeze and suggest a secondary position-flipping slide to test 1.2700 within the context of redefining the broader 1.25-1.37 range. “Once again, the head and shoulders pattern may be mentioned, but should produce little other than talk.” Riddell notes.