Richard Perry
Independent Analyst
The potential basing process has turned into a sideways consolidation for the euro and it seems for now as though there is a lack of direction. This mood is likely to continue possibly until tomorrow evening when the Fed announces its latest monetary policy update. The positive aspect of EUR/USD is that the selling pressure has abated in the past few days and that the prospects of a base pattern are still reasonably high. The resistance at $1.2986 remains a barrier and the psychological $1.3000 will need to be breached to suggest that a recovery might have some legs in it, whilst intraday momentum indicators are completely neutral. However there is still the feeling that as so often in the past couple of months that consolidations will resolve to the downside. Daily momentum indicators just suggest this is helping to unwind an oversold position, ready to renew downside potential. I still remain a seller into strength and I expect further downside in due course.
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