EURUSD - Bearish on Rallies Below 1.3602

For the second day in a row EURUSD remained broadly within Monday’s range during the European time frame. But late selling pressure renewed the underlying negative tone highlighted in this week’s view. Selling has continued in Asia taking EURUSD to the lowest levels since February.

Intraday signals for sentiment are at oversold extremes and a growing concern regarding profit taking. Therefore today’s call is Bearish on rallies below 1.3602. The immediate objective is 1.3523 with a move below that point targeting 1.3497, this month’s base, or even towards 1.3410.