Sound EUR/USD rebounds off 1.3100 (interim 50%) have met 50% of slide from 1.3450 at 1.3280 with relatively positive momentum. The overall profile is now unclear as downside pressures have abated, suggests Tim Riddell, Head of Global Markets Research at ANZ.
The economists say:
“Short-term EUR/USD dips ought to hold 1.3170 (ideally 1.3215) to allow for a secondary squeeze, but a surge through 1.3370 is needed to push aside downside risks for a push through 1.3450 for a retest of 1.3710.”
“Despite outlining upside potential, the favored profile is for rebounds to falter in front of 1.3300. A break below 1.3170 should then trigger a test of 1.3020 within a possible down leg to redefine recent range lows.”