Richard Perry
Independent Analyst
The outlook for the euro has certainly taken a turn for the worse in recent days and this is now beginning to have an impact across the momentum indicators. With Stochastics now in negative configuration, the MACD lines are bearishly crossing and the RSI has dropped off. There is also further downside potential in the momentum and with the key multi-year low at $1.0456 in sight a retest is now increasingly likely. The intraday chart shows the top pattern that was completed on a move below the neckline at $1.0712 which is now the key resistance. There has been a downtrend channel on the hourly chart which the euro is currently consolidating in but with the hourly momentum indicators all in bearish configuration this just looks to be a consolidation before further weakness. A drift back below the near term support at $1.0565 would re-open the downside.
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