With a lack of driving economic data over the past few days, the euro has been running off technicals and hence why it has been in steady decline. With several key supports breached the outlook remains very weak, however the final major reaction low at $1.2660 is so far holding. There are very minor signs of support, with a doji candlestick yesterday (open and close at the same level denoting uncertainty with the prevailing trend). This uncertainty is understandable we move into a crucial period dominated by key fundamental data, starting with today’s Eurozone inflation and unemployment. There is no doubt that the chart is incredibly weak, however this does not mean that minor rallies will not be seen every now and again. Rallies tend to be 50 to 100 pips recently, with around 140 pips the biggest low to high move seen over the past few months. Could we be set for another rebound? Intraday resistance is at $1.2740 and $1.2815.

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