Richard Perry
Independent Analyst
After the volatility of that was seen on Wednesday there was an element of calm that returned to proceedings yesterday. However the outlook is under pressure once more for the euro as the key support at $1.2245 is back within range for the sellers. If this key support is broken then once more the way is open back towards a test of the crucial July 2012 low at $1.2040. The price action of the past few weeks does not suggest that the downside move is unlikely to be a one way move and rallies should be seen once more as a chance to sell. The intraday hourly chart shows that the old support at $1.2357 has once more become a basis of resistance and should now be considered to be a near term ceiling, with further resistance at $1.2415.
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