Richard Perry
Independent Analyst
After two strong days of selling pressure the euro has settled down slightly, with a day of consolidation that has to all intents and purposes left a doji candlestick (open and close around the same level). The fact that this consolidation has come above the support at $1.2604 should give the bulls some hope, however I expect that now the support at $1.2700 has been breached the outlook is once more under downside pressure. The momentum studies have turned negative once more with especially the Stochastics showing downside impetus. I continue to expect any rebound towards $1.2700 to now flounder and for the selling pressure to re-assert once this consolidation is over. There is immediate resistance built at $1.2676 over the past day and with hourly moving averages bearing down, I expect pressure on the support at $1.2604. A breach of the support re-opens $1.2500 again.
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