Markets

EUR/USD: Multi-month consolidation nearing end, risk of range-flipping to the downside

Technical analysis charts of EUR/USD via Westpac in their Institutional Bank latest

WPAC provide technical analysis for a range of instruments in the publication, this is their look at EUR/USD.

Multi-month consolidation nearing end and EUR at risk of range-flipping to the downside

MONTHLY

• EUR/USD has been consolidating in a tight range around 1.10 since early 2015

(61.8% of its post inauguration) - bias is for a range flip lower at some point

• Monthly momentum indicators remain neutral (having stabilised close to 50 in both

RSI's and Slow Stochastics) but are now rolling lower (risk of 0.95?)

WEEKLY

• The triangle pattern could still be dominant, despite the recent slip. A squeeze to

mid-range could still develop before the anticipated EUR break lower

• Momentum is now low and could turn positive. However, rebounds would be seen

as a selling opportunity

DAILY

• Rebounds off 1.0350 have taken EUR/USD back into the preceding range with a

positive turn in daily momentum suggesting at least an interim correction phase

• EUR rebounds are likely to be short-lived, especially if they fail to regain levels

above 1.0835-50. A slide below 1.0400 would underscore the negative bias

WPAC have charts for the monthly, weekly and daily ... here's the weekly chart:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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