FTS Forex Trading (Lagos, Nigeria) - The broader trend in the big US dollar remains geared towards more strength, says Shaun Osborne, chief FX strategist at TD Securities.
Shaun notes: "We think EUR/USD may be on the verge of another significant move lower. Fundamentals support the outlook for a stronger USD at least in the medium-term. Technicals suggest that the move lower that we are anticipating over the next 12-18 months may come a bit quicker and be a little more pronounced than our current forecast profile suggests."
From a technical perspective, Shaun notes two important issues: "Firstly, for the first time since last October, the 40-day moving average is poised to cross (below, in this instance) the 200-day moving average. We consider the 40- and 200-day MA crosses to be important directional guides for EUR/USD. In the past few years, the crossovers have been reliable directional indicators."
"We think short EUR positions are warranted now on modest EUR gains back through the 1.30 area or on a clear break of support in the upper 1.27 area" Shaun concludes.
Shaun notes: "We think EUR/USD may be on the verge of another significant move lower. Fundamentals support the outlook for a stronger USD at least in the medium-term. Technicals suggest that the move lower that we are anticipating over the next 12-18 months may come a bit quicker and be a little more pronounced than our current forecast profile suggests."
From a technical perspective, Shaun notes two important issues: "Firstly, for the first time since last October, the 40-day moving average is poised to cross (below, in this instance) the 200-day moving average. We consider the 40- and 200-day MA crosses to be important directional guides for EUR/USD. In the past few years, the crossovers have been reliable directional indicators."
"We think short EUR positions are warranted now on modest EUR gains back through the 1.30 area or on a clear break of support in the upper 1.27 area" Shaun concludes.
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