EURUSD: Upside rejection to dominate
For a third week in a row, trading was contained within the parameters set by the Brexit week. In fact, the last five days produced the narrowest range since early April, and only limited net movement. The upside was capped by a 50% correction point, but selling pressure was unable to sustain prices below the 13/200-day moving average area until Friday’s late decline. Obviously, this price action cannot provide strong signals for sentiment going into this week, but they are assessed as negative.
Management and risk description
A move to 1.0971 means the stop can be lowered to break even.
Entry: Sell in the 1.1055/65 area, and any rally to 1.1119.
Stop: 1.1186 bid.
Target: 1.0971, 1.0910 or even 1.01815.
Time horizon: This week, ending Friday, July 22, 1pm London time.
Limited movement in the EURUSD weekly chart
— Edited by D. Deacon
Non-independent investment research disclaimer applies. Read more