Strategy 22 January 2014

Maintain a negative bias EUR/USD, but allow for some consolidation circa 1.3485, the 55 MONTH m.a.

EUR/USD continues to ease back from the 2008-2014 downtrend, at 1.3905. We maintain that the high at 1.3894 is an intermediate turning point for the market (top) and continue to look for further weakness. The market remains directly offered below 1.3700 the high charted in the middle of January. It has so far sold off towards the 1.3485 55 month ma – it is possible that we will see this hold the initial test ahead of losses to 1.3353./ 1.3295 (200 day ma and the November low) and the 1.3155 2012-2014 support line.
To know more click here PDF