Richard Perry
Independent Analyst
Could this be the start of a near term turnaround in sentiment on the euro? The first really positive candlestick was formed for the first time in almost two weeks yesterday. This has resulted in a bullish crossover in the Stochastics (a buy signal would now come on a move back above 20 on the momentum indicator). So, there is certainly the beginning of something, now there needs to be a positive day today to back up the improvement of yesterday. The hourly chart shows there has been a consolidation around the old $1.0900 pivot level overnight and the early European session is seeing the euro catch a bid and is now pushing higher on a move towards the $1.0960/$1.1000 band of resistance. As yet there is no real suggestion that the hourly momentum is showing anything more than another technical rally from the $1.0818 low, whilst the real test would be to negotiate the $1.1065 key resistance as any rally would merely be seen as counter to the bigger sell-off until that key level was tested. However, for now the euro is looking to rebound.
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