EUR/USD managed to partially recover the lost ground ahead of the weekend but remains on the back foot as exit polls in Spain show a mixed picture. What’s next?
Here is their view, courtesy of eFXdata:
ING discusses EUR/USD technical outlook and shifts to a bearish bias on a multi-day basis.
“Prices plummeted yesterday, closing below the horizontal support at 1.1215 and making new short-term lows below the March low at 1.1177 and the recent April low at 1.1184. This is confirming the view that the upside potential was and is very limited and that the risks are on the downside. This sell-off triggered a minor Sell signal and therefore we like to downgrade our rating to ‘Down’ from ‘Neutral’,’ ING notes.
“However, a close below the next horizontal support around 1.1115 is required for a serious Sell signal in expecting a sharp decline thereafter. Until then, we cannot rule out the start of another consolidation within the long-term downtrend before the horizontal support around 1.1115 will break. The short-term upside potential is limited with strong horizontal resistance at the former breakout level at 1.1215 with the declining MA-50 line coming in at 1.1286. There are short-term bearish targets at 1.1050, 1.0975 and 1.0830,” ING adds.
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