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5 Aug 2014
EUR/AUD: Potential to do a little better near term - TDS
FXStreet (Bali) - While the dominant trend is down, TDS FX Team notes that the EUR has now the potential to stabilize or do a little better near-term.
Key Quotes
"The strong trend lower in the cross that we highlighted last week has stalled. The broader risks here remain geared to the downside but the bounce in EURAUD back through the 1.4364 resistance point that we had expected to cap gains suggest that the EUR can stabilize or do a little better near-term at least than we had expected last week."
"The overall trend down remains deeply entrenched on the longer-term charts and the break below the June/July consolidation (bear flag formation) points to more losses going forward."
"From here, we have to look for the base of that bear flag formation to cap EUR gains in the upper 1.44s; otherwise we will have to go back to the drawing board and revise the bearish outlook."
Key Quotes
"The strong trend lower in the cross that we highlighted last week has stalled. The broader risks here remain geared to the downside but the bounce in EURAUD back through the 1.4364 resistance point that we had expected to cap gains suggest that the EUR can stabilize or do a little better near-term at least than we had expected last week."
"The overall trend down remains deeply entrenched on the longer-term charts and the break below the June/July consolidation (bear flag formation) points to more losses going forward."
"From here, we have to look for the base of that bear flag formation to cap EUR gains in the upper 1.44s; otherwise we will have to go back to the drawing board and revise the bearish outlook."