EUR/USD: Bearish bias, 1.1325/75 capping rebounds - Lloyds

Analysts from Lloyds Bank pointed out that the 1.1220 could be tested again, but is likely to hold ahead of the FOMC minutes; a break of that level could determine the next move of the EUR/USD pair.

Key Quotes:

“We retain a bear bias with 1.1325/75 capping rebounds. The latest push lower overnight has room to re-test the 1.1220 previous reaction lows, but we are unlikely to break that region ahead of the Fed minutes tonight. They will then dictate the near term price action and whether we extend towards trend line support at 1.1085 or bounce back to test 1.1325/75 resistance.”

“A move through 1.16/1.17 would open those upper levels, otherwise our bias is for a very gradual move back towards 1.1075, maybe 1.09.”