FX Weekly (23 Oct ’16)
EUR/USD remains under heavy selling pressure, with prices extending the fall from congestion around 1.1200 to close beneath the 1.0909 low of June.
In the coming weeks, further losses towards the 1.0820 low of March are highlighted, as studies and sentiment continue to deteriorate, with a further close beneath here opening up the 1.0790 retracement.
Resistance is lowered to the 1.1050 break level and is expected to cap any immediate bounce as investors maintain a sell-into-strength strategy. If broken, not seen, congestion around 1.1200 will attract as investors move back to a cautious stance.
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