EUR/USD: below 1.0819 will expose further downside – KBC

FXStreet (Barcelona) - The KBC Bank Research Team maintains a cautious sell on upticks approach on EUR/USD, anticipating a move lower towards 1.0521/1.0458 on a break below 1.0819.

Key Quotes

“In a longer term perspective, EUR/USD still trades in the 1.0819/1.1467 consolidation range. We maintained a cautious sell on upticks approach for return action lower in this range as we don’t see a real change in the global picture even as we are well aware of the risks.”

“The 1.1534 February correction top remains our line in the sand to maintain a USD positive bias MT term. After the recent moves, this area now looks better protected.”

“On the downside, the 1.0819 level (27 May low) is the first high profile reference. A break below that level would open the door for a retest of the 1.0521/1.0458 area.”

“A sell-on-upticks approach remains slightly preferred. Uncertainty on Greece might continue to cause erratic swings.”

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