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Forex Flash: EUR/USD broader signals remain mixed – TD Securities

FXstreet.com (Barcelona) - The choppy trading in EUR/USD continued last week after a number of economic events were released which failed to take the pair out of its recent trading range. Some analysts are pointing towards mixed signals on the charts, and looking at a few key levels which may help determine the direction going forward.

According Shaun Osborn, Chief FX Strategist at TD Securities, “EUR/USD is a market showing every sign of wanting to trade higher but it is failing miserably to get any sort of traction. Indeed, soft price action through the latter part of the week should mean a bit more downside movement to test support below 1.30 in the week ahead. Wednesday’s “shooting star” top around the mid-May high and retracement resistance (50% of the 1.37/1.27 drop at 1.3232) should set a strong cap on the market from a short-term point of view. A retest of sub-1.30 levels at least seems likely”

He went on to add, “Broader signals remain mixed. On the one hand, the April month overall was EUR-positive from a technical point of view (marginal outside range higher). On the other, this week’s slide off the high’s leave the EUR looking anemic (weekly “shooting star”) and vulnerable to more downside pressure. The market’s reaction to the support zone noted above just below 1.30 is likely to help determine the near-to-medium term outlook for EUR/USD. 1.2772 (possible weekly H&S top neckline) remains the key weekly support point.”

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