Richard Perry
Independent Analyst
EUR/USD
The euro remains under corrective pressure as a third consecutive negative candle was formed yesterday. This is beginning to weigh on daily momentum indicators which is seeing the RSI and Stochastics roll over around their neutral points and MACD lines doing similar a shade below neutral. The hourly chart shows a sequence of lower highs and lower lows now forming, with a classic negative configuration set up on momentum. The hourly RSI is failing around the mid-50s and pulling back towards 30, whilst hourly MACD lines are struggling under neutral. Resistance has strengthened at $1.1040/$1.1050 as an area of key lower high now (under $1.1145) but also now the prospect of another lower high resistance area $1.0950/$1.0970. This would be around the old $1.0950 pivot and suggest negative pressure of selling into strength. With intraday rallies failing we expect pressure on $1.0885/$1.0900. Trading clear below the 38.2% Fibonacci retracement (of $1.1492/$1.0635) also brings into focus the 23.6% Fib around $1.0835.
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