5 Jun 2015
EUR/USD: Watch year-long trendline at 1.1393 - BofA
FXStreet (Bali) - MacNeil Curry, CFA, CMT, Strategist at Bank of America Merrill Lynch, notes that with Bund yields turning and a year-long trendline resistance at 1.1393, EUR/USD is likely to see renewed downside pressure.
Key Quotes
"With Bund yields turning, €/$ is likely to stall out and turn lower; particularly given its proximity to almost year-long trendline resistance at 1.1393. Against here, the larger downtrend for 1.0283/1.0000 remains on firm footing"
"However, for now, we recommend staying away until a break of 3m channel support at 1.0870. This would confirm an end to the counter-trend price action and herald in a return to a trending environment."
Key Quotes
"With Bund yields turning, €/$ is likely to stall out and turn lower; particularly given its proximity to almost year-long trendline resistance at 1.1393. Against here, the larger downtrend for 1.0283/1.0000 remains on firm footing"
"However, for now, we recommend staying away until a break of 3m channel support at 1.0870. This would confirm an end to the counter-trend price action and herald in a return to a trending environment."