24 Mar 2014
EUR/USD: Rule of alternation implies risk to the upside - BBH
FXStreet (Bali) - EUR/USD main risk remains to the upside, according to Marc Chandler, Global Head of Currency Strategy at BBH.
Key Quotes
"The positive technical tone of the euro has not been broken, even though it fell to nearly $1.3750 and closed below it 20-day moving average for the first time in over a month."
"It finished the week just in the 5-cent 5-month trading range ($1.33-$1.38). It found good bids below $1.38. To truly weaken the technical picture, the euro has to take out the $1.3680-$1.3700 area."
"The new trading range seems to be $1.3750-$1.4000 and since the bottom end of the range was last tested, the rule of alternation implies risk to the upside."
Key Quotes
"The positive technical tone of the euro has not been broken, even though it fell to nearly $1.3750 and closed below it 20-day moving average for the first time in over a month."
"It finished the week just in the 5-cent 5-month trading range ($1.33-$1.38). It found good bids below $1.38. To truly weaken the technical picture, the euro has to take out the $1.3680-$1.3700 area."
"The new trading range seems to be $1.3750-$1.4000 and since the bottom end of the range was last tested, the rule of alternation implies risk to the upside."