EUR/USD: Overall, price action remains quite bearish and we continue to like the idea of selling into rallies in anticipation of a more sizeable pullback below the 200-Day SMA. The longer-term moving average resides by the 1.3900 figure and a clear break below will open the door for a test of next key support in the 1.3750. In the interim, look for the formation of a fresh lower top below 1.4350, with only a break back above this level to delay outlook. Thursday’s topside failure by 1,4300 could very well offer itself as this lower top, with the market stalling by a convergence of moving average resistance in the form of the 20/50/100-Day SMAs. Ultimately, only back above 1.4300 would delay outlook.
EUR/USD Classical Technical Report 07.21
Thu Jul 21 05:15:00 GMT 2011
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