12 Jan 2015
EUR/USD targeting 1.1212/1.0071 – Danske
FXStreet (Barcelona) - Thomas Hovard of Danske Bank, feels that EUR/USD breaks through 1.2042 levels confirm a complex top for 1.212 and 1.0071.
Key Quotes
“EUR/USD has now broken through 1.2230, the multi-year complex top support line, and 1.2042, the 2012 low, to confirm the major topping area. Studies support the break and the market is now weakening to test our first significant objective at 1.1640, the 2005 low.”
“The top area, as discussed earlier, projects very significant downside over coming days, weeks and months. Below 1.1640 would pivot lower to test 1.1212, the 61.8% retracement level of the 0.8228 to 1.6040 October 2000 to April 2008 cycle.”
“The complex top area, however, indicates scope is likely below here towards the 76.4% retracement level at 1.0071. MACD continues to confirm/support the negative cycle from 1.3995.”
“The broken support line, now at 1.2245, should cap any recovery/corrective attempts. However, only above the 19 November lower ceiling at 1.2602 would delay the downside more significantly in favour of a test on 1.2887.”
Key Quotes
“EUR/USD has now broken through 1.2230, the multi-year complex top support line, and 1.2042, the 2012 low, to confirm the major topping area. Studies support the break and the market is now weakening to test our first significant objective at 1.1640, the 2005 low.”
“The top area, as discussed earlier, projects very significant downside over coming days, weeks and months. Below 1.1640 would pivot lower to test 1.1212, the 61.8% retracement level of the 0.8228 to 1.6040 October 2000 to April 2008 cycle.”
“The complex top area, however, indicates scope is likely below here towards the 76.4% retracement level at 1.0071. MACD continues to confirm/support the negative cycle from 1.3995.”
“The broken support line, now at 1.2245, should cap any recovery/corrective attempts. However, only above the 19 November lower ceiling at 1.2602 would delay the downside more significantly in favour of a test on 1.2887.”