Technical analysis comments from Citi on the euro against the US dollar:
EURUSD peaked the week of 4 Sept 2017 at 1.2092
- entered into a deep correction that took it back to 1.1554 over 9 weeks.
- for the deepest correction since the rally began in earnest in April that year
- Thereafter it rallied higher to the 1.2555 Feb 2018 peak.
Citi goes on to note similarities and to what to watch now:
- Then, as now, weekly momentum was very overbought and started to turn lower.
- Good support comes in between 1.1754 and 1.1782 and if that gives way then a deeper move towards 1.15 again would look an increased danger.
- A weekly close this week below 1.1763, if seen, would be a bearish outside week at the trend high and suggest more losses to come.
(bolding mine)
Weekly chart shows the 2017 move Citi is referring to:
