Richard Perry
Independent Analyst
In light of it being Labor Day yesterday in the US it was a predictably quiet day for the euro. However, with a full trading complement back in force today, the Euro/Dollar pair could see increased volatility. The outlook though remains extremely weak for the euro and it is difficult to see a viable strategy in anything other than continuing to use intraday rebounds as a chance to sell. Intraday rebounds tend to be anything up to 30 to 40 pips before the selling pressure resumes. The nagging feeling though is that with the recovery set up seen on Cable, there may be technical rally looming. However, if one does materialise then there is little sign of it on the technicals. The old support at $1.3150 has become the new resistance, with a band of supply then up towards $1.3200, with the real near term resistance in at $1.3220. The set up on the intraday chart simply suggests selling into strength remains the best option.
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