Richard Perry
Independent Analyst
Are the euro bulls ready for a fight back? The selling pressure of the past 8 days seems to have abated, at least near term anyway. The move which was triggered by a report that apparently the ECB will not be engaging further monetary easing measures at next week’s policy meeting has driven the euro up to test the reaction high resistance at $1.3215. This is a level which needs to be overcome for any sort of technical recovery to take hold. A breach would complete what would considered to be a small base pattern to give a target of $1.3280 which would not even get the rate back to the resistance of the falling 21 day moving average (currently $1.3325) which has been a basis of resistance recently. Buying into a rebound certainly is not without its risks and I would rather see it representing another chance to sell. However for now it looks like the bulls are fighting once again. It has been a while since we could say that.
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