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21 May 2015
EUR/USD is resuming its downtrend - BofA
FXStreet (Bali) - MacNeil Curry, CFA, CMT, Technical Strategist at Bank of America Merrill Lynch, notes that €/$ is resuming its downtrend, while he remains bullish $/¥.
Key Quotes
"€/$ has broken below the confluence of near term support at 1.1165/1.1131 (2m, old channel resistance, now support and the May-11 low). As highlighted in the most recent KrystalBull, a break below here is needed to indicate a top and resumption of the long term bear trend."
"Going forward, bounces should be sold. Next support to note is seen at 1.1053/1.1036 (old Mar/Apr highs), but these should be only a temporary stopping points ahead of 1.0535/98 (2m channel base), then 1.0462 (Mar-16 low), and then the 1.0283, long term targets."
"Meanwhile, we reiterate our bullish view on $/¥. Evidence continues to say that the contracting range of the past 4+ months is drawing to a conclusion and the long-term uptrend is set to resume for 124.59, ahead of 128.45."
"Below 118.33 invalidates this view and points to continued range-trading. Those awaiting additional price confirmation should watch for a break 120.86 (Apr-13 high). We recommend adding to long positions on a break 120.86."
Key Quotes
"€/$ has broken below the confluence of near term support at 1.1165/1.1131 (2m, old channel resistance, now support and the May-11 low). As highlighted in the most recent KrystalBull, a break below here is needed to indicate a top and resumption of the long term bear trend."
"Going forward, bounces should be sold. Next support to note is seen at 1.1053/1.1036 (old Mar/Apr highs), but these should be only a temporary stopping points ahead of 1.0535/98 (2m channel base), then 1.0462 (Mar-16 low), and then the 1.0283, long term targets."
"Meanwhile, we reiterate our bullish view on $/¥. Evidence continues to say that the contracting range of the past 4+ months is drawing to a conclusion and the long-term uptrend is set to resume for 124.59, ahead of 128.45."
"Below 118.33 invalidates this view and points to continued range-trading. Those awaiting additional price confirmation should watch for a break 120.86 (Apr-13 high). We recommend adding to long positions on a break 120.86."