EUR/USD had some kind of correction after the big blow form the ECB and the smaller blow from Greece.
However, the team at Bank of America Merrill Lynch sees the end of this correction. Here are charts and levels:
Here is their view, courtesy of eFXnews:
For the past few days, EUR/USD has been correcting higher before stalling and now this correction seems to be drawing to a close, notes Bank of America Merrill Lynch.
“Now that correction looks to have completed (a zig-zag formation for those who follow Elliott Wave analysis) and the larger bear trend is set to resume,†BofA clarifies.
“A break of 1.1224 (Jan-27 low) would confirm a resumption of the larger bear trend for 1.10000 (round number) ahead of 1.0765 (Sep’03 lows) and eventually below,†BofA projects.
On the upside, BofA thinks that a move above 6wk trendline resistance (now 1.1494) would be the 1st sign of trouble for EUR/USD bears, but it would take a break of 1.1679 (Jan-21 low) to point to a near term base and turn in trend.
“To be clear, we do not expect a break of either of these levels, but the risks must be highlighted,†BofA warns.
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