EUR/USD: It depends on 1.16/1.17 - Lloyds

Analysts from Lloyds Bank, warned that a break below 1.1360/1.1320 in EUR/USD would signal a false break of the previous range highs.

Key Quotes:

“A breakdown through 1.1360/1.1320 will add further evidence that the rally to 1.1615 was a false break of the 1.14/1.1465 previous range highs. Supports then lie at 1.1220 and the more important trend line at 1.1050. A move back through intra-day resistance at 1.1480/1.1530 would re-expose the highs.”

“Longer-term we are correcting the downtrend from 1.60 and 1.40, having developed a base at 1.0450. It is not clear whether this will remain in a range, or see a C wave rally up to test monthly resistance in the 1.19-1.23 region, so short-term price action is key in determining this, with a move back through 1.16/1.17 the obvious trigger for a move to those upper levels.”