Richard Perry
Independent Analyst
EUR/USD
Another small bodied daily candlestick suggests that it is still too early for the bulls to get excited on EUR/USD. The payrolls report eventually weighed on the pair, and once more it left a candlestick with a lot of bluster (long shadows) but little real conviction (small difference between open and close). Subsequently, as the dust settles we continue to see EUR/USD ranging. With today being a US public holiday, this outlook is unlikely to change much coming into the weekend (aside from perhaps some initial chop around the Eurozone PMIs). Taking a step back, the euro continues to find buyers around the range lows between $1.1165 and $1.1200 area. However, for the past few weeks now, the weight of sellers bares down on the market between $1.1300/$1.1350. Momentum indicators are flattening off, with the daily RSI still holding firm above 50, whilst Stochastics have also lost their negative impetus. There have now been five closing candles in a row which have lacked conviction, so this is a market looking for direction.
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