29 Jan 2015
EUR/USD bear trend to resume – BAML
FXStreet (Barcelona) - MacNeil Curry, CFA, CMT, Technical Strategist at Bank of America-Merrill Lynch, views that the EUR/USD correction has ended and the pair might resume its bear trend towards 1.1000.
Key Quotes
“For the past 4 days, €/$ has been correcting higher. Now that correction looks to have completed (a zig-zag formation for those who follow Elliott Wave analysis) and the larger bear trend is set to resume.”
“A break of 1.1224 (Jan-27 low) would confirm a resumption of the larger bear trend for 1.10000 (round number) ahead of 1.0765 (Sep'03 lows) and eventually below.”
“A move above 6wk trendline resistance (now 1.1494) would be the 1st sign of trouble for €/$ bears, but it would take a break of 1.1679 (Jan-21 low) to point to a near term base and turn in trend. To be clear, we do not expect a break of either of these levels, but the risks must be highlighted “
Key Quotes
“For the past 4 days, €/$ has been correcting higher. Now that correction looks to have completed (a zig-zag formation for those who follow Elliott Wave analysis) and the larger bear trend is set to resume.”
“A break of 1.1224 (Jan-27 low) would confirm a resumption of the larger bear trend for 1.10000 (round number) ahead of 1.0765 (Sep'03 lows) and eventually below.”
“A move above 6wk trendline resistance (now 1.1494) would be the 1st sign of trouble for €/$ bears, but it would take a break of 1.1679 (Jan-21 low) to point to a near term base and turn in trend. To be clear, we do not expect a break of either of these levels, but the risks must be highlighted “