28 Jul 2014
Scope for sustained EUR/AUD bounce limited - TDS
FXStreet (Bali) - According to the FX Team at TD Securities, scope for any sustained EUR rebound against the Aussie appears to be limited.
Key Quotes
"The underlying trend lower in EURAUD remains strongly entrenched in the market, suggesting that in an environment of broader USD appreciation, the EUR is likely to under-perform."
"The cross has rebounded modestly through the latter part of the week but, with the DMI oscillator reflecting an intense trend lower unfolding across a range of time frames, we rather think that scope for any sustained EUR rebound is limited."
"With the EUR slipping and holding below the base of the June/July consolidation channel (bear flag), we continue to look for a drop to the 1.39 area."
"We also think the early June low at 1.4364 will help slow EURAUD rebounds near-term. Look to sell modest rallies."
Key Quotes
"The underlying trend lower in EURAUD remains strongly entrenched in the market, suggesting that in an environment of broader USD appreciation, the EUR is likely to under-perform."
"The cross has rebounded modestly through the latter part of the week but, with the DMI oscillator reflecting an intense trend lower unfolding across a range of time frames, we rather think that scope for any sustained EUR rebound is limited."
"With the EUR slipping and holding below the base of the June/July consolidation channel (bear flag), we continue to look for a drop to the 1.39 area."
"We also think the early June low at 1.4364 will help slow EURAUD rebounds near-term. Look to sell modest rallies."