Richard Perry
Independent Analyst
After the strong rebound of Thursday, the gains are beginning to slow in front of the key Federal Reserve meeting announcement on Wednesday. With just a mild gain yesterday (and a fairly neutral candle) the consolidation seems to be continuing today. The euro is now trading with a slightly positive outlook within a broad range. It would appear that for now at least, the selling pressure has been averted, with the 21 day moving averages flattening off. The daily momentum indicators are near term encouraging but this chart does not have the look of one that is ready to break decisively higher. The intraday hourly chart shows the sequence of gains in the past week, whilst the pivot level around $1.0900 again seems to have been an area of resistance. A decisive breach of $1.0900 would open the range highs at $1.1035/50. Support continues in the range $1.0775/$1.0800. Although near term dips could be seen as an opportunity to buy the upside is fairly limited as I do not see a breakout above $1.1035/50, whilst also being counter to what I also see as a continuing bearish medium term trend.
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