EURUSD bearish trend extension bias
· We had expected a defensive digestion tone on Tuesday, but a more bearish tone resumed quicker than anticipated.
· We did state in our last client report that “the latter July push below chart and retrace supports at 1.3400 and 1.3375 leaves bearish pressures into early August to aim for the 1.3295 spike low from Nov 2013”.
· Whilst capped below 1.3445, we see downside to this support this week.
· Downside overshoot threat is still to the 61.8% retrace at 1.3230 and maybe the 1.3105 in August.
WHAT CHANGES THIS?
· Above 1.3495 eases bear risks; through 1.3550 signals a neutral tone, only shifting positive above 1.3652.
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