Richard Perry
Independent Analyst
EUR/USD
The euro is beginning to yield under growing corrective pressure. Since the early December rally failed around the resistance of the top of the two month trading band $1.1180/$1.1200, the selling pressure has been growing. Lower highs and lower lows with negative candles becoming more prevalent. We have been looking at the pivot band $1.1075/$1.1100 as being mid-range (the absolute range parameters being $1.0980/$1.1200). However, this band is under growing strain. Breached by a strong bear candle on Friday, momentum signals are now corrective. The MACD lines are bear crossing and Stochastics falling below neutral to two week lows. Momentum is growing for another retreat towards the $1.1000 area again. $1.1100/$1.1110 is a pivot resistance area now that the bulls need to overcome to prevent this growing corrective move. The only caveat is whether the lack of conviction of Christmas week helps to support the euro?
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