Richard Perry
Independent Analyst
There is a real test of outlook in process. The euro had been coming under pressure as the dollar bulls were gaining control, but this move has temporarily at least been stopped in its tracks. We are now in a state on consolidation once more as the price for the past couple of days has traded sideways. That is not to say that there has been no volatility in that time though (the disappointing Non-farm Payrolls report saw to that), but still the consolidation is coming around the key pivot level at $1.1050. I have been saying about the importance of this pivot for a while and whilst the euro continues to trade above it, on a medium term basis the outlook remains positive. The dip low may come in at $1.1030 but the support has built around $1.1030 in the last two days. The momentum indicators are very much in a neutral configuration now, although with the RSI under 50 and Stochastics remaining around the lower bounds there is a slightly corrective slant still. However the intraday hourly chart shows an increasingly neutral near term stance. I would expect this may continue through today with the uncertainty of the Greek referendum. Initial resistance comes in at $1.1170 before the main near term resistance at $1.1278.
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