Richard Perry
Independent Analyst
The euro chart has been a good gauge for the performance of the dollar over the past few days and the bullish bias that has been seen suggests that the dollar is under increasing pressure. After a couple of days where the euro just drifted slightly, the bulls are regaining the initiative once more. The rate seems to be settled now above the $1.2700 level which had previously been a neckline for a bullish break and is now acting as near term support. The first key test will be at $1.2840 which has capped the upside on several occasions in the past week. With intraday momentum building nicely once more the bulls will certainly be looking for a breakout. A breach opens the spike high at $1.2885, whilst above that the way is open for a return to $1.3000.
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