EUR/USD - upside is fairly limited from here
A quick take from an overnight note via ING, on the uero
- EUR/USD rise stalled after the US-Mexico deal.
- Given the already dovish market pricing of the Fed and the lack of potential EUR-positive catalysts this week (if anything, we see risks of the ECB turning more dovish in coming
months) EUR/USD upside is fairly limited from here.
On the other hand (potentially), (in brief) remarks from TA at Comerzbank)
- EUR/USD has cleared the 2018-2019 downtrend on a weekly closing basis and in doing so completed a falling wedge pattern with a 1.1990 upside measured target.
- To really ignite upside interest we suspect, a close above the 200 week ma at 1.1347 and the 200 day ma at 1.1365 is also probably needed (see weekly chart) to target the 1.1570 2019 high.
- Dips lower are indicated to hold at 1.1255/30 and will ideally be contained by 1.1175. We regard recent lows at 1.1110/06 as an interim turning point.
- Where are we wrong? Support at 1.1110/06 is regarded as the break down point to the 2018-2019 support line at 1.1027 and the 1.0814 78.6% Fibonacci retracement.