EURUSD keeps the better tone after early NY fall, but remains contained
The EURUSD fell in early NY trade. Comments from Sarkozy and Merkel reminded the market of the Greek situation but after a fall to the midpoint of the days range (and the close from Friday at 1.2720) the buyers came back in the market. The price is above the corrective channel but has been stalling in front of earlier day highs.
On the hourly, the price is still well below the 38.2% of the last week trend move lower at the 1.28221 level. The high today moved into the consolidation range that prevailed before the US Unemployment report on Friday, but once in the area, the price stalled (consolidation range – yellow area in the chart above -is from 1.2762 to 1.2811). The high off the low in the NY has come up to 1.2766. If the shorts in the EURUSD are to be squeezed more, a move above the 1.2762 level willl need to hold. Failure to develop trading volume above that level, will likely lead to longs selling as intraday up and down in the NY range become the focus. A break below the 1.2720-25 area should increase the bearishness for the pair.
Overall the trend move down last week is the dominant bias. Buyers have shown some ability to keep the price up but is it enough? Not yet.
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like your analysis Greg.. we’re on the same boat.
Thanks…Tell your friends. Tweet it. Let the word out. We look to provide meaningful analysis for retail traders. THat is our focus. ; ) Thanks again!