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4 Feb 2015
EUR/USD: Bullish correction may continue
FXStreet (Bali) - The bullish correction in EUR/USD may continue for the week ahead, notes Dmytro Bondar, Technical Analyst at RBS.
Key Quotes
"As we expected, the pair saw a marginal recovery, as it bounced from the 1.11 support (being the 123.6% projection from the 2009-2010 impulse wave) –discussed in the Charing FX Majors last week."
"This bullish correction is still going on and may continue for the week ahead with 1.15/1.16 tested. However, the long-term technical picture stays bearish, as the 1.11 support was broken and weekly MACD remained negative, indicating downtrend continuation to at least the next key support of 1.063."
"Therefore, I favour selling rallies from 1.158/1.166 to 1.065 stopping on a sustained break above 1.19."
Key Quotes
"As we expected, the pair saw a marginal recovery, as it bounced from the 1.11 support (being the 123.6% projection from the 2009-2010 impulse wave) –discussed in the Charing FX Majors last week."
"This bullish correction is still going on and may continue for the week ahead with 1.15/1.16 tested. However, the long-term technical picture stays bearish, as the 1.11 support was broken and weekly MACD remained negative, indicating downtrend continuation to at least the next key support of 1.063."
"Therefore, I favour selling rallies from 1.158/1.166 to 1.065 stopping on a sustained break above 1.19."