Richard Perry
Independent Analyst
The euro is under growing pressure now. A strongly bearish candle was posted yesterday which resulted in 100 pips of downside on the day and more importantly a close below the previous low at $1.1098. This move has taken the euro to its lowest level since 2003 and creates something of a void of support. It is below the 100% Fibonacci projection target of a 2011/2012 bear market at $1.1093 and now the next support is at $1.1000 which is psychological. The next real support does not come in until $1.0760 from way back in 2003, so there is very little to hold up the bears. The momentum indicators are bearish but also show further downside potential in the move. The intraday hourly chart also reflects this negative momentum with further downside. There is a minor reaction high overnight at $1.1085 and nothing overly significant until around $1.1150 so there is room for a technical rally. However any bounce would be a chance to sell.
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