Flash: The USD is trading in a mixed fashion – TD Securities

FXstreet.com (London) - Research teams at TD Securities said that the USD is trading in mixed fashion overall today but they are still of the opinion that the general direction in the big dollar should be higher while focus remains on the potential for the Fed to adjust asset purchases in the months ahead.

Overall, they remain USD-constructive and they rather think that current levels offer an attractive entry point for EUR/USD shorts. Talk of real money and sovereign selling has helped cap the EUR rebound just below the 1.30 area; near yesterday’s highs; through the overnight session. They say this is an important short-to-medium term resistance zone for EUR/USD as 1.2963 marks the base of a double top break-down trigger from the 1.32 area. They suggest that this points to a drop in EUR/USD back to the low 1.27 area in the next few weeks; a move that will compromise a key zone of medium/longer-term support if it pans out.