Richard Perry
Independent Analyst
The euro is still under pressure. The rallies just do not seem to be able to gain any traction before the selling pressure resumes again. In the past week there have been two separate days when the bulls look to be mounting a recovery, but the move is cut down by a sharp sell-off that just takes out a load of support and the stepped decline continues. Yesterday saw a slight rally off $1.2814, but looking at the daily momentum indicators the move just looks to be just another chance to sell. The very slight bullish divergence on the RSI is the only indicator that suggests there could be a chink of light for the bulls. However with all other indicators so bearish, the expectation is for further downside to the $1.2786 initial support of the 61.8% Fibonacci retracement of the $1.2040/$1.3991 bull run, in addition to the potential for a retest of the July 2013 low. The intraday chart shows an initial resistance at $1.2867, but $1.2930 is the main level the bulls will need to breach now near term.
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