EUR/USD: Perhaps this is a moment for a near term pullback? [Video]
|EUR/USD
The euro has been running higher for over a week now, as traders have been pricing for an encouraging outcome from the EU Recovery Fund talks. This morning we see that the talks have (finally) concluded with agreement and the euro is stuttering. Perhaps a moment for a near term pullback? It will be interesting to see how markets react this morning, but the move will not be driven by technicals which remain strong. Yesterday’s latest bull candle was a second successive closing level above $1.1420 and still playing strongly within the three week uptrend channel. Momentum indicators are strongly configured but are also not stretched, with further upside potential. The 14 day RSI is into the mid-60s, whilst MACD and Stochastics lines are rising in strong configuration. In the absence of any serious selling (or profit-taking) pressure, we would still look at any near term weakness as a chance to buy. The intraday low at $1.1420 is holding initially this morning, whilst the hourly chart shows $1.1370/$1.1400 is a growing band of support. The bulls will still have designs on pushing above the March high of $1.1490 and into the $1.15s. That would then be the next decisive move. Below $1.1350 would disappoint the bulls now.
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