EUR/USD: Room For More Pain To Come To Longs; Levels To Watch – Citi

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EUR/USD continued grinding lower and is already at a 6-month low. What’s next? There may be more falls to come.

Here is their view, courtesy of eFXdata:

Citi discusses EUR/USD outlook and and maintains a tactical bearish bias in the near-term.

“Market feeling underinvested in the EUR short trade, put money to work. We believe the market still feels that they are not short enough, and thus every rally continues to be sold into. That said, we have had a large move in rate differentials. If the market was so keen to use that as an excuse to be short, that will likely drive price action over the week.

Weekly close below the 55 week moving average confirmed the bearish outside week in continuation. Now on the topside the 1.1825-1.1830 should act as resistance.

We still think there is pain to come for EURUSD longs and we may see 1.14501.1550 where a number of supports converge,” Citi argues.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.