Richard Perry
Independent Analyst
After seeing six days in a row of selling pressure the euro has now rebounded for the past three. I remain a seller into strength and I am once more now looking for an opportunity to sell. The daily momentum indicators retain a configuration that suggests rallies will be seen as a chance for the bears to reassert themselves. I have spoken recently about the key pivot levels at $1.0800 and $1.0900 and I see these as having important roles to play today. The intraday hourly chart shows that the euro has been consolidating around the 50% Fibonacci retracement of the $1.1035/$1.0519 decline at $1.0776. Furthermore there has also been a consolidation around $1.0800 overnight. A push back above $1.0800 would re-open $1.0900 but it is between the two at which I expect to see some sort of sell signal form. There is support now round $1.0700 initially and then $1.0620.
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