Richard Perry
Independent Analyst
The choppy and uncertain trading on the euro continues. There has been very little overall gain made for over a week now, however the medium term outlook remains under pressure. The daily chart shows the key resistance still in place with the neckline of the continuation top pattern around $1.2600, whilst yesterday’s high was to the pip at the previous reaction high of $1.2577 and has only gone to strengthen the resistance in the area. Furthermore, the resistance from a downtrend dating back to August also comes in around $1.2600. The mid-afternoon sell-off coincided with Mario Draghi’s dovish comments and whilst there has been no precipitous selling pressure yet, this should also help to cap any upside. With the intraday hourly chart showing minor resistance around $1.2510, use rallies towards here as a chance to sell. Expect a retest of the lows at $1.2397 and then $1.2357 in due course.
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