A look at the chart of the euro via Lloyds
- Prices have reversed back through 1.1550 resistance and into the previous June/July range. We are expecting to see more two-way price action around these levels, with 1.1500-1.1460 now support on pullbacks. As such, our bias is for an eventual move back to test the 1.18-1.20 resistance region. A decline through 1.1460/1.1400 would risk another test of the 1.13-1.12 support region first.
- Long term, we believe 1.0350 was a major low, which completed the cycle from the 1.60 highs in 2008. We view the current medium-term pullback from 1.2555 as corrective, but ongoing, ahead of an eventual move towards 1.40.
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Makes a nice break from politics!