After initially continuing Wednesday’s decline, EURUSD selling pressure
stalled near 1.4100 Thursday. This downside failure was countered by the
weakness of subsequent demand and a renewal of some selling pressure in
Asia.
Overall this week's trading has been volatile but ultimately without direction. Nonetheless overnight price action gives a mildly negative tone and so our call is very Cautiously Bearish while below 1.4258. The immediate objective is 1.4155 with a move beneath that point targeting yesterday's 1.4104 low, or even 1.4055, last week's bottom.
The risk to this call is that selling pressure is weaker than currently assessed although a fresh outright Buy signal would only be generated by a move through 1.4258. Prices and sentiment should then improve to 1.4293, yesterday's top, or even 1.4375, Wednesday’s open.
Overall this week's trading has been volatile but ultimately without direction. Nonetheless overnight price action gives a mildly negative tone and so our call is very Cautiously Bearish while below 1.4258. The immediate objective is 1.4155 with a move beneath that point targeting yesterday's 1.4104 low, or even 1.4055, last week's bottom.
The risk to this call is that selling pressure is weaker than currently assessed although a fresh outright Buy signal would only be generated by a move through 1.4258. Prices and sentiment should then improve to 1.4293, yesterday's top, or even 1.4375, Wednesday’s open.
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