FXstreet.com (Barcelona) - The cross is trading in the boundaries of 0.8350 on Monday, as the greenback is losing ground across the board and increasing the demand for riskier assets.
Chief Analyst A.L.Rasmussen at Danske Bank suggests “The market has been in a broad-based congestion pattern since posting a high of 0.8842 on 1 August 2011. However, the prominent lows at 0.7371 and 0.7456 in 2011/12 suggest an underlying bullish structure. This view is reinforced by the recent price action, which has seen the market bounce strongly from the 50-Week MA to clear 16-month trendline resistance drawn from the 0.8842 peak”.
“Immediate focus is on the 28 September high at 0.8357, above which will open the way for a test of 0.8471/95… Further out, scope is seen to 0.8572 (31 August 2011 high) ahead of a return to 0.8842”, the analyst concludes.
Chief Analyst A.L.Rasmussen at Danske Bank suggests “The market has been in a broad-based congestion pattern since posting a high of 0.8842 on 1 August 2011. However, the prominent lows at 0.7371 and 0.7456 in 2011/12 suggest an underlying bullish structure. This view is reinforced by the recent price action, which has seen the market bounce strongly from the 50-Week MA to clear 16-month trendline resistance drawn from the 0.8842 peak”.
“Immediate focus is on the 28 September high at 0.8357, above which will open the way for a test of 0.8471/95… Further out, scope is seen to 0.8572 (31 August 2011 high) ahead of a return to 0.8842”, the analyst concludes.
