With EUR/USD swinging back mildly lower yesterday the move just adds to what is a growing sense of near term uncertainty. We have recently discussed the trend of higher lows and higher highs in the past few months, whilst momentum indicators keep a mild positive bias. However, what is also notable is the lack of conviction on near term moves which is preventing a decisive trend formation. Accordingly, as the mini rebound struggles to really get going, there is a two week downtrend as a barrier at $1.1150 today. This is restricting a recovery, along with the highs of recent days at $1.1145. On the downside though, once more in yesterday’s session the market was adding to the old pivot support of $1.1100 which maintains a mild bull bias of the outlook. EUR/USD is in a very frustrating moment and the hourly chart shows a lack of decisive direction (hourly RSI oscillating between 30/70). Holding above $1.1065 will sustain the run of higher lows, bull control and also a three month uptrend.
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