Temporarily Bearish & Sell 1.0840 Rally. Stop 1.0874
Yesterday's negative forecast was justified despite the downside being limited. The profit taking move lower emphasised the importance of Monday's failure at the 200 day mvg avg. Losses/Profit taking from that point gathered momentum in the latter part of the day and Monday's gains were reversed. This reactive move is assessed as temporary but incomplete and so our call is a modest Sell from 7am but leaving room to Sell any Rally to 1.0840. The risk is yesterday's 1.0874 top with an immediate target of 1.0793, Monday's low. A move through that point then exposes sentiment to 1.0764, the 13 day mvg avg, or even 1.0740, March 21st open.The risk is that selling pressure is weaker than currently assessed and this would be confirmed by a move up through yesterday's 1.2536 top. Further gains would then target 1.2570, last Friday's high.
UPDATE 08:44: .: In line with today's bearish forecast, EURUSD has been sold to our 1.0793 target. The next objective is 1.0764 with a stop now set at today's 1.0827 peak (sell rally cancelled).
|Intraday||Temporarily Bearish & Sell 1.0840 Rally. Stop 1.0874|
|Week||Temporarily Bearish from Mon’s 7am open below 1.2680|
|Quarter||Bearish from July 2nd’s open below 1.3487|