Technically chase EUR/USD and stay caution on EUR/GBP – Deutsche Bank

By FXStreet FXStreet (Delhi) – Oliver Harvey, Macro strategist at Deutsche Bank, presents his technical views on G10 forex pairs.

Key Quotes

“Trendiness has returned to G10 universe over the last two weeks. EUR/USD tops our technical scorecard as it is the most highly trending pair (to the downside) with VHF at 88th percentile. The cross is not particularly stretched and has a relatively smooth price action indicating the recent move lower should be followed.”

“Elsewhere, USD/CHF is also highly trending with VHF at 97th percentile, but not particularly stretched (albeit with high levels of risk premia in the options market).”

“EUR/GBP appears to be trending to the downside, but is quite stretched in terms of both RSI and RR metrics and highly volatile as per realized vol suggesting caution in chasing the trend.”
For more information, read our latest forex news. …read more

Source:: FX Street