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4 May 2015
EUR/USD could be ready to resume the downside – TDS
FXStreet (Edinburgh) - Strategists at TD Securities recommend selling the pair on strength after the recent climb to the vicinity of 1.1300 the figure.
Key Quotes
“The fact that EURUSD has stalled at the initial retracement of the 1.40/1.04 decline (23.6% Fibonacci resistance at 1.1296) is a clear warning that the rally in the EUR could be over before it really got going”.
“An extension through 1.13 should see the EUR rally extend—towards 1.16 potentially—in the next few weeks but the calendar may be running against the EUR, given that seasonal trends tend to move against the EUR quite distinctly (since 1999, at least) in May”.
“For choice, given the stall at key retracement resistance, we favour short EURUSD positions now, with a close stop/reverse above major retracement resistance at 1.1296”.
Key Quotes
“The fact that EURUSD has stalled at the initial retracement of the 1.40/1.04 decline (23.6% Fibonacci resistance at 1.1296) is a clear warning that the rally in the EUR could be over before it really got going”.
“An extension through 1.13 should see the EUR rally extend—towards 1.16 potentially—in the next few weeks but the calendar may be running against the EUR, given that seasonal trends tend to move against the EUR quite distinctly (since 1999, at least) in May”.
“For choice, given the stall at key retracement resistance, we favour short EURUSD positions now, with a close stop/reverse above major retracement resistance at 1.1296”.