dark cloud

dark cloud

EUR/USD 01/07/2015

4d ago
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Description

There are just a few signs that after a tumultuous couple of days, the euro is beginning to settle down. Interestingly enough too, the settling level as we enter the European session on Wednesday morning is not far from the consolidation support around $1.1130/50 that the euro had traded in last week prior to the dramatic movements. The bullish engulfing pattern of Monday has been neutralised by an almost “dark cloud cover” candle, so on a net net basis, I would say that is honours even. The momentum indicators reflect this too with RSI and MACD lines all but neutral. Interestingly the Stochastics are actually rising, whilst the fact that the euro is trading above the $1.1050 pivot suggests there is still a slightly positive bias still. The intraday hourly chart shows that trading over the past 12 hours has settled and we now await the next catalyst with hourly momentum indicators also rather benign. This consolidation comes ahead of a huge couple of days of US economic data so this is not too surprising as we look to the States now to drive sentiment.