Richard Perry
Independent Analyst
The euro has been consolidating ever since the FOMC announcement on Wednesday but looking at the daily chart this simply looks to be another instance of the bears renewing their downside potential for another sell-off. The resistance of the 6 week downtrend today comes in at $1.1430. The daily RSI has unwound to over 30 but this is indicative of a bear market rally. In the absence of any real buying pressure the sellers look to be biding their time. The intraday hourly chart looks to be a little more of a mixed outlook near term but having completed the small base pattern, the bulls have not been able to gain any real upside traction for a recovery. For now the euro is trading sideways but the weight of the bearish technical factors is still weighing strong and I expect a retest of the $1.1098 low in due course. I am looking for a sell signal to kick things off. There is initial resistance at $1.1382 and then $1.1422.
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