Our cautiously bullish call on EURUSD for yesterday proved correct but gains were limited in both time and price. The subsequent sharp reversal took it to a 2nd consecutive negative daily performance and a move to the lowest levels of the week. Although the lows were not maintained, an overnight rally proved temporary and limited.
In view of this, and negative momentum, our call is Bearish below 1.4555. The immediate objective is 1.4478, yesterday's low, with a move below that point targeting 1.4451, the 3rd June low, then 1.4405, half of the net gains from June 2nd.
The risk to this call is that oversold extremes begin to correct earlier and higher than currently assessed. This would be signalled by a move above 1.4555, the overnight high, with subsequent upside targeting 1.4596, yesterday's European afternoon open, or even Thursday’s high at 1.4652.
In view of this, and negative momentum, our call is Bearish below 1.4555. The immediate objective is 1.4478, yesterday's low, with a move below that point targeting 1.4451, the 3rd June low, then 1.4405, half of the net gains from June 2nd.
The risk to this call is that oversold extremes begin to correct earlier and higher than currently assessed. This would be signalled by a move above 1.4555, the overnight high, with subsequent upside targeting 1.4596, yesterday's European afternoon open, or even Thursday’s high at 1.4652.
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