Euro has been indecisive against the dollar following its bullish breakout Wednesday on poor US data and easing inflation concerns. With Germany and France on a Holiday for Pentecost Monday trading was mostly muted at the start of the week giving us a lower high. Ahead we continue to see a clear calendar data wise though Monetary Policy makers will be out in force with speaking engagements from the ECB’s Legarde to multiple FOMC members.
Resistance
- 1.09812 – March High
- 1.09426 – Daily High 3/21
- 1.08879 – Daily Consolidation Resistance
Support
- 1.08358 – Double Top Trigger
- 1.07902 – Previous Daily Consolidation Resistance
- 1.07600 – Floor Intraday Consolidation Floor
We are now forming a potential double top / descending triangle in the 4H charts our of the indecisive daily candles. With the daily stochastic coming off overbought levels it would be worth watching if the pattern is triggered with a break of 1.09358 allowing us to short targeting the Daily Moving averages just under 1.07902. We will also consider the buy side coming off 1.08358 should we see long tails in the hourly charts and look for the range play to continue.
