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May 27, 2013
Flash: EUR/USD has a strong resistance at 1.2975/1.3025 - TD Securities
FXstreet.com (Córdoba) - EUR/USD's medium-term technical picture retains a weak bias, according to the TD Securities team, which adds that on the daily chart, two features stand out.
Firstly, a bearish MA crossover. "Spot remains below the 40– and 200-day MAs, which have also crossed negatively", TD says. "The second factor to consider is the 1.32/1.2965 double top breakdown (targets 1.2729, i.e. a marginal new cycle low, over the next 2-4 weeks). Spot has retested, but not held above, the neckline this week and we consider the formation and downside target as valid still".
"We think 1.2975/1.3025 remains strong resistance on the daily chart and we continue to view modest EUR rallies as a selling opportunity", they conclude.
Firstly, a bearish MA crossover. "Spot remains below the 40– and 200-day MAs, which have also crossed negatively", TD says. "The second factor to consider is the 1.32/1.2965 double top breakdown (targets 1.2729, i.e. a marginal new cycle low, over the next 2-4 weeks). Spot has retested, but not held above, the neckline this week and we consider the formation and downside target as valid still".
"We think 1.2975/1.3025 remains strong resistance on the daily chart and we continue to view modest EUR rallies as a selling opportunity", they conclude.