FOREX TRADING

Daily Technical Analysis

EURUSD Outlook

The EURUSD didn’t make significant movement yesterday. Overall price still consolidation in range area of 1.3450/35 – 1.3735/50. The bias remains neutral both in nearest and medium term but the long term outlook remains bearish. For me, there are two technical events that must take place in this situation to give us clearer direction, a break above the major bearish channel confirming bullish reversal scenario towards 1.4025/50 or a break below the triple bottom around 1.3450/30 area to confirm bullish failure and continue the major bearish scenario towards 1.3100. Immediate support at 1.3530. Break below that area could trigger further bearish pressure re-testing 1.3450/35 area. On the other hand, break above 1.3735/50 area should be seen as a serious threat to the major bearish scenario at least targeting 1.3850 region.

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Increasing Arguments To Cut USD Shorts

News and Events:

The USD remains buoyant as the tide of news and data seems to be shifting favour away from high beta currencies into year end. The last few weeks have seen a melee of separate factors jolt markets out of their habitual USD-selling mindset. Dubai’s debt worries initially sent investors fleeing for the reassurance of the USD safe-haven, subsequent Greece downgrades weighed heavy on the EUR, and then the massive shock improvements in US payrolls and retail sales led to a reassessment of whether the USD was a still a reliable candidate for funding carry trades. (more…)