Richard Perry
Independent Analyst
The euro managed to unwind some of Friday’s weakness yesterday but it merely looks to once more be a case of renewing the downside pressure. The key low at $1.2357 was hit to the pip before the rally set in, with the move unwinding back towards the initial resistance at $1.2440 and then rolling over. The technical indicators on the intraday hourly chart suggest that this is just another rally that has given a chance to sell. The hourly RSI has failed to get back above 65 before falling over, whilst the MACD lines have also rolled over around neutral. The daily chart suggests that the euro may be rangebound for now, but the medium term outlook remains negative and a downside break looks to be approaching. Maybe this rebound that has hit resistance mid-range will be the catalyst. There is further resistance around $1.2500 and then $1.2577.
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