The report embedded below includes EUR/USD, USDX, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD, GBP/JPY, EUR/JPY, EUR/GBP, EUR/CHF, Gold and Silver.
EUR/USD (MIG Bank)
Breaks out of triangular consolidation.
- EUR/USD has resumed its bearish activity and has broken out of the all important triangular consolidation pattern.
- The move follows last Friday’s worse-than-expected NFP figures which paradoxically pushed the US dollar higher, as market sentiment refocused back onto risk aversion and a flight to traditional quality/safe haven assets.
- Our short position favours sustained weakness to unlock an accelerated impulsive (wave 3) into 1.3670 (61.8% Fib-Jan 2011 uptrend). Only a sustained close above 1.4653 and most importantly 1.4711/30 will lead us to re-evaluate.
- Inversely, the US dollar index has broken above 76.36 (23rd May high), to confirm a multi-month w-shaped base pattern for an extension into 7701 and 78.03 (50%/61.8% Fib-Jan 2011 Decline).
- Further upside scope is also being supported by increased long positions on our COT liquidity, which has been positive for the last 6 weeks."
2011 07 13 Migbank Daily Technical Analysis Report