Richard Perry
Independent Analyst
EUR/USD
It is a delicate time for major forex. The dollar has shown signs of recovery in the past few sessions and this has halted breakouts across the likes of EUR/USD. The ensuing pullback has though not done enough to back a stronger dollar (yet) and means that the market lies in a zone of uncertainty. During the late July/early August consolidation range on EUR/USD, 1.1800 was a mid-range pivot around which the market traded. This pivot has come back into play during the pullback of the past few sessions (although is now becoming slightly less adhered to). We see daily technicals having tailed off in their positive medium term configuration. MACD and Stochastics momentum indicators are falling away, but RSI remains above 50. Yesterday’s bull failure candlestick has simply added to the near to medium term mixed outlook that has formed. However, a basis of support is again forming today and the market is again around the 1.1800 pivot area. Holding above 1.1755 (Friday’s low) will maintain this mixed outlook and protect the 1.1695 key support of the past month. The bulls need to hold a move above 1.1880 (Friday’s high) to regain control.
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