The way that Euro/Dollar is falling it would seem now as though any rally should be viewed as another chance to sell. Yesterday’s rebound (on positive German flash PMI data) has allowed a little bit of oversold momentum to unwind, but is likely to prove little more than a rally that will once again be sold into. The resistance starts to come in around $1.3300, but the old support of the two week consolidation around $1.3330 is the first real test for a rebound. Momentum indicators which had been showing bullish divergences have now aborted the recovery signals and this now suggests that selling into any rebound would seem to be the only real strategy. A dovish speech from Yellen today could give the euro a pop to the upside, but it is unlikely to go too far before the seller quickly pounce once again.
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