Richard Perry
Independent Analyst
EUR/USD
It is like Groundhog Day for the euro bulls right now. The European traders come in to build support, only for US traders to come in and smash it all down again. This has happened in almost every session for more than two weeks now. The downtrend formation today comes in at $1.0820 and is still a good basis of resistance. Momentum is still deeply oversold, with the RSI at 21 this morning, whilst MACD and Stochastics are also desperately negative. We have been discussing the prospect of a technical rally for a few days now and whilst this precipitous sell-off continues, there is daily hope that the support of the European session translates through to US trading. For now though, EUR/USD continues to fall at multi-year lows with little real support. There is an argument for $1.0775, however, realistically the next key support is $1.0490/$1.0560. The hourly chart shows resistance $1.0820/$1.0840 and until the hourly RSI is decisively above 60, a technical rally remains elusive.
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