FXstreet.com (Barcelona) - EUR/USD daily price action suggests the risk of a deeper pullback has grown this week, Shaun Osborne, Chief FX Strategist at TDS, notes.
Mr. Osborne believes price action suggests that the coming week will be characterized by further consolidation and possibly more weakness towards 1.26/1.27; "broad congestion resistance at 1.3060/1.3260 is capping the topside for the moment. Longs should tighten up stops. Shorts will look to establish or increase positions around 1.3050 we think" the Analyst notes.
TDS Chief FX adds: "Longer-term price action suggests consolidation also but also leaves open the risk of a stronger reversal in the medium term. A weekly “harami” candle (akin to an inside range signal) formed this week and suggests that EUR buying power has weakened sharply – though selling pressure has not picked up."
Mr. Osborne believes price action suggests that the coming week will be characterized by further consolidation and possibly more weakness towards 1.26/1.27; "broad congestion resistance at 1.3060/1.3260 is capping the topside for the moment. Longs should tighten up stops. Shorts will look to establish or increase positions around 1.3050 we think" the Analyst notes.
TDS Chief FX adds: "Longer-term price action suggests consolidation also but also leaves open the risk of a stronger reversal in the medium term. A weekly “harami” candle (akin to an inside range signal) formed this week and suggests that EUR buying power has weakened sharply – though selling pressure has not picked up."
