If the broader USD can push through range resistance then this rate will likely challenge important support around 1.2090, with little support below there till 1.2000-1.1975 and then 1.1875-1.1865. While over this support we expect more of a range at this stage, albeit volatile and wide, with resistance in this regard at 1.2375 and then 1.2600.

Longer term, the drop to 1.1491 suggests that the decline from the ~1.72 highs set back in 2014 is ongoing and still risks another move lower before a more significant base develops. Medium term, we are expecting a wide range to develop first.



EUR continues to trade with a downward bias, but we are now reaching important support in the 1.0950-1.0900 region. Divergence in the momentum studies warns that the downside is potentially limited for now and we risk another corrective rebound back towards 1.1075, with a move through there and then 1.1120 suggesting we are actually still in the 1.0900-1.1365 range. A break of 1.0900 sees little in the way of support till 1.0760-50.

Longer term, we are becoming wary that the 1.0450-1.17 range is developing as a “flag” consolidation ahead of a test of key long-term support in the 1.00-0.99 region. We are monitoring this for greater clarity and confidence in this view. For now, further range trading is likely to persist.


Would you like to get more such informations directly on your email? Try out FxWatcher service for 5 days for free!

Error, group does not exist! Check your syntax! (ID: 3)