Forex Flash: EUR/USD targets 1.4257 long-term – RBS

According to Technical Strategist William Moore at RBS, “Despite the sell off in the week commencing the 4th of February it still looks like from a longer-term perspective that the bias is ultimately EUR positive, this is mainly from the inverse head and shoulders pattern as set out adjacent that’s target lies up at 1.4257, which is the spike higher from October 2011.”

However, “Be aware of potential resistance at the important retracement level before then at 1.3835 and the annual high thus far at 1.3709, otherwise the target sits in the 1.4000s.There is also plenty of support to buy dips into should towards the important 1.3152 level with a stop loss below the neckline lows at 1.3000.” Moore warns.