EURUSD: Consolidates, Maintains Above 1.3458 Level.
February 7, 2013 in Forex Analysis
EURUSD: Our broader bias on EUR remains higher in the medium term despite its present price consolidation. On ending the mentioned consolidation, the pair should eventually return above the 1.3710 level and trigger its medium term upside. This if seen should force further upside towards the 1.3800 level with cut through here calling for a run at the 1.3850 level. Conversely, on further corrective downside support comes in at the 1.3458 level where a violation will call for a run at 1.3335 level. We expect this level to reverse roles as support and turn EUR higher again. But if this fails to occur, further weakness could develop towards the 1.3250 level. All in all, EUR continues to retain its broader medium term upside bias.