There has been some very indeterminate candles in the course of the past couple of days which reflect the lack of decisiveness in trading the euro. This comes after a recent rally had unwound any oversold momentum back to neutral and the price is again trading around the 21 day moving average. The intraday hourly chart shows a messy sequence of moves, with no real trend emerging. The moves in the last few days have been alternating between rallies and corrections ranging between 100/150 pips at a time. The head and shoulders top pattern completed on 20th April is still intact but whether it has any real relevance anymore is debatable. I have found the pivot level at $1.0800 once again doing a job yesterday also, whilst the 38.2% Fibonacci retracement of $1.1035/$1.0519 is also providing an interesting consolidation area at $1.0716. Until this choppy trading period ends and we get some direction it is difficult to call, however With the overhead supply, the weight of the technical indicators suggest the bears will win out in the end. Support comes in at $1.0658 and $1.0623.
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