Richard Perry
Independent Analyst
The corrective drift that came with the break below $1.5665 implies $1.5535. Yesterday’s dip did not quite reach there before an intraday rally (on the back of the disappointing payrolls report) just halted the decline at $1.5560. For now there is little reason on the momentum indicators why this should be any more than a minor near term bounce that will again be sold into by the near term bears. The daily chart shows the momentum indicators still in corrective mode, led by the Stochastics. The hourly chart shows a consolidation (and a bull key one hour reversal with the payrolls data yesterday), but the buyers have yet to materialise. I see this more of a move to unwind any oversold intraday momentum and should result in further downside in due course. There is a band of resistance $1.5640/$1.5680 which is the initial barrier. I still expect $1.5560 to be retested.
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