Strategy 11 December 2013

EUR/USD approaching major long term resistance at 1.38-1.40 which is expected to cap the topside

When thinking about our favourite trade for next year, it is clear that despite the fact that we consider the Australian Dollar the currency most likely to be the weakest in the G7 next year, the chart pattern which interests us the most is in fact the longer term chart for EUR/USD. There are a number of technical developments, which need to be highlighted on the longer term EUR/USD charts as they all suggest that the high at 1.3833 charted in October 2013 is likely to be a key intermediate turning point for the market (top).
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