EUR/USD: We continue to favor the downside - Lloyds

Analysts from Lloyds Bank, continue to favor the EUR/USD  lower, with a break of 1.1045/25 triggering more weakness.

Key Quotes:

 “EUR was contained in a relatively tight range yesterday. Given underlying risk sentiment and price dynamics, we continue to favour the pair lower. Intra-day, a move through 1.1045/25 should trigger further weakness, towards the key interim support region at 1.0940/10, with a break there leading to a re-test of key technical support in the 1.0825/1.0750 area.”

“We expect EUR strength to be capped by trendline and Fib resistance at 1.1170/1.1200, but a move through and subsequent break of 1.1225/35 may alleviate the bear pressure and threaten recent reaction highs at 1.1420.”

“Longer term we are becoming wary that 1.0450-1.17 range is developing as a “flag” consolidation ahead of a test of key long-term support in the 1.00-0.99 region. We are monitoring this for greater clarity and confidence in this view.”