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8 Jan 2015
EUR/USD: Potential for a shorter term squeeze - FXCharts
FXStreet (Bali) - According to Jim Langlands, Founder at FXCharts, from a technical perspective, Euro is looking heavy still in the medium term, although there is potential for a shorter term squeeze.
Key Quotes
"Technically the Euro is looking heavy still in the medium term, although the shorter term charts do hint at the chance of a squeeze to the topside. A downside break of 1.1800 would suggest a run towards 1.1743, where the Euro was initially pegged to the dollar in January 1999. Beyond here, we are likely to head to the 2005 low at 1.1640."
"The topside should see good selling interest now at 1.1875, above which could head back to 1.1900. The hourlies are trying to turn a bit higher from an oversold condition, so if we do see any sort of squeeze, look for a return, above 1.1900, to 1.1975 (23.6% of 1.2569/1.1800) and possibly to 1.2000, where there is still a gap that needs to be filled from the lower Monday opening price. If so, there is no change in the view that it would be a good sell opportunity."
Key Quotes
"Technically the Euro is looking heavy still in the medium term, although the shorter term charts do hint at the chance of a squeeze to the topside. A downside break of 1.1800 would suggest a run towards 1.1743, where the Euro was initially pegged to the dollar in January 1999. Beyond here, we are likely to head to the 2005 low at 1.1640."
"The topside should see good selling interest now at 1.1875, above which could head back to 1.1900. The hourlies are trying to turn a bit higher from an oversold condition, so if we do see any sort of squeeze, look for a return, above 1.1900, to 1.1975 (23.6% of 1.2569/1.1800) and possibly to 1.2000, where there is still a gap that needs to be filled from the lower Monday opening price. If so, there is no change in the view that it would be a good sell opportunity."