Richard Perry
Independent Analyst
The downside pressure on the euro is just beginning to creep through once more. Although we still have the key support at $1.1260 intact the momentum is beginning to gather. Despite the lack of any significant direction (or bearish candlesticks) there has now been three negative closes in the past four sessions as the euro once again backs away from the resistance of the 23.6% Fibonacci retracement at $1.1443. Having previously shown a consistent improvement in momentum, over the past week the bears have been slowly regaining the control. RSI is now falling and Stochastics are at a 3 week low. The intraday hourly chart does not really show anything specifically negative and the bulls would argue that the support continues to be formed in the band $1.1260//$1.1300, however with key resistance now around $1.1450 there has been a lower high formed around a little pivot level resistance at $1.1360 that has formed over the past few days. It looks as though the euro is shaping for further pressure on the $1.1260 support, below which opens $1.1220 but little real support until the low again at $1.1098.
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