Forex Flash: EUR/USD, any fall to 1.25-1.27 opportunity to build longs - ANZ

FXstreet.com (Barcelona) - Stepping back from near-term gyrations is needed to reinforce the medium-term technical profiles in the EUR/USD, argues Tim Riddell, Head of Global Markets Research at ANZ.

Tim notes: "Although anticipated 1.27-1.28 support held last month, rebounds have lacked impulse. The rebounds are considered to be correcting the fall from 1.3720, which is itself seen as a corrective pullback of the rally seen since crisis low of 1.2040."

In terms of price action in the coming month, Tim said: "Dips ought to hold above 1.2920-25 now and allow for a secondary squeeze towards 1.33; that should complete an inner counter move and then leave EUR/USD within the mid-ground of a likely range defining (1.25-1.35 ought to be the range into midyear) with a bias to redefine the recent range support."

Longer-term though, Mr. Riddell sees potential fall towards 1.25-1.27 area "as an opportunity to build long EUR positions for gains in H2 2013" he said, adding that "the style of any such slippage will therefore be closely monitored."