Richard Perry
Independent Analyst
EUR/USD
The euro rebound of the past week has just hit the buffers slightly in the last couple of sessions. Monday’s rally high of $1.1090 has taken on a marker of resistance as an element of consolidation has set in. The fact that this is playing out around the old $1.1060/$1.1075 pivot band is also interesting. Whilst not to the pip, it appears that this is a neutral area within what is an increasingly rangebound outlook on EUR/USD. This is reflected in the momentum indicators losing traction around their neutral points (c. 50 on RSI and Stochastics, around zero on MACD). The hourly chart shows that the near term rally has lost traction, with the hourly RSI, MACD and Stochastics all tailing off to their lower levels in several days. There is initial support at $1.1040/$1.1060 which if breached opens $1.0990 again. Above $1.1100 would be a signal for renewed positive traction towards $1.1180. We sit neutral on EUR/USD waiting for the next signal.
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