24 Mar 2014
EUR/USD upside limited - TDS
FXStreet (Bali) - According to Shaun Osborne, Chief FX Strategist at TDS, potential EUR/USD gains early week should be limited.
Key Quotes
"The sharp sell off from Wednesday took the market below the 1.3820/30 support point we highlighted as possibly opening up the downside more significantly. Friday's consolidation may mean a modest bounce in the market early this week but gains are likely to remain relatively limited and a quick resumption in the short-term trend lower through 1.3775 will point to more losses in the days ahead. We spot support at 1.3725 (40-day MA) but a tumble from the effective range ceiling may mean a drop back to 1.34/1.35 in the next few weeks."
"The turn lower in the weekly EURUSD chart looks a little more serious—the two things we highlighted as bear risks for EURUSD have been realized. Firstly, EURUSD closed last week back below major trend resistance at 1.3811 now. Secondly a big net loss last week forms the third leg of an “evening star” bear reversal. Weekly support at 1.3623 currently looks poised to be tested."
Key Quotes
"The sharp sell off from Wednesday took the market below the 1.3820/30 support point we highlighted as possibly opening up the downside more significantly. Friday's consolidation may mean a modest bounce in the market early this week but gains are likely to remain relatively limited and a quick resumption in the short-term trend lower through 1.3775 will point to more losses in the days ahead. We spot support at 1.3725 (40-day MA) but a tumble from the effective range ceiling may mean a drop back to 1.34/1.35 in the next few weeks."
"The turn lower in the weekly EURUSD chart looks a little more serious—the two things we highlighted as bear risks for EURUSD have been realized. Firstly, EURUSD closed last week back below major trend resistance at 1.3811 now. Secondly a big net loss last week forms the third leg of an “evening star” bear reversal. Weekly support at 1.3623 currently looks poised to be tested."