Richard Perry
Independent Analyst
The euro continues to trade in this 3 week range between $1.2357/$1.2600 and within that range, selling the rallies has continued to be the best strategy. The outlook on the daily chart remains under medium to long term downside pressure with the 3 month downtrend once more recently proving to be the resistance which has capped the gains. The downtrend today comes in at $1.2513. The intraday hourly chart shows the recent rebound looks to be running out of steam once more. The recent peak at $1.2530 seems to have marked a near term high with the initial higher low at $1.2440 under serious threat. The hourly momentum indicators are suggesting the impetus in the latest rebound has been lost with the configuration on the hourly RSI, Stochastics and MACD lines all turning negative. Yesterday’s lower high came once more around the $1.2500 pivot level within the band which also adds to the growing bearish outlook within the band. Any rallies remain a chance to sell and a confirmed breakdown of $1.2440 would confirm further weakness for a test of first $1.2400 and then $1.2357 once more.
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