Richard Perry
Independent Analyst
Has the euro rally rolled over again? The initial signs are not great, with yesterday’s close below the low of the previous session the candle has been fairly bearish. The RSI has turned lower at 50 whilst the Stochastics have also begun to turn lower again. On the intraday hourly chart there has been a small head and shoulders top formed below $1.0735 which implies a target of $1.0620.
Furthermore, in the past two days there has been a series of lower highs and lower lows formed which is putting pressure on the downside, with the next support at $1.0700 before $1.0620. Hourly momentum indicators have turned more corrective in the past 24 hours too. It would now need a break back above the $1.0800 pivot level to suggest that the bulls had regained control.
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