The US dollar suffered a beating of late. Is it time for a comeback against at least one currency?
Here are the views from ING:
Here is their view, courtesy of eFXnews:
EUR/USD prices improved significantly over the past few days, violating the short-term bearish view.
“The daily chart shows that prices are building momentum after the break above the MA- 50 line at 1.0887, suggesting further gains in the next few days,†notes ING.
“However, we consider the short-term upside potential to be limited with next horizontal resistance coming in within the 1.1030-1.1045 area. From here we should expect the next short-term sell-off,†ING projects.
“The longer-term picture is following our path of a larger consolidation pattern in the downtrend between 1.0450/1.0150 at the lower side and 1.1490/1.1660 at the upper end. All in all, we raised our short-term rating to ‘Neutral’ from ‘Down’,†ING adds.
In USD/JPY, ING notes that the long-term overall picture remains sideways between 116.25 and 121.50.
“Within this trading range prices are developing a dull narrow trading range between 118.30 and 120.50,†ING projects.
“Short-term selling pressure towards 118.30 and possibly lower should be expected as long as prices are moving below the MA-50 line at 119.83,†ING adds.
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