Financial Advisor

EURUSD - Cautiously Bearish below 1.4258

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.


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