EUR crosses/EUR/USD/Flows and Orders/FXWW News/Technical Analysis/Trade Ideas

EUR/USD: Cross buying helps put interim base in place

  • Most recent downmove stalled at a 50% retracement level (see chart);
  • EUR/AUD saw some some heavy corporate buyers emerge below 1.4300;
  • EUR/JPY trading towards upper end of consolidation pattern (see chart) and a break above 132.40 could accelerate momentum;
  • Modest profit taking also emerged in EUR/GBP.

Overall it still looks like a sideways trading proposition for EUR/USD but the bulls have the better short-term prospects in my view. Buying any dips back onto the 1.31 handle makes sense and we will certainly see some dips whenever Draghi tries to talk it lower.

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