Euro initially tried to rally in response to another weak inflation metric from the US though the reaction proved to be short lived eventually giving up gains to see a big sell-off by the close. Our inability to hold gains following the Wednesday rally suggests a focus on the divergence between US and the Eurozone in monetary policy and underlying economic conditions and the need to find the next equilibrium.
Resistance
- 1.08523 – High for Wednesday
- 1.08165 – Intraday Consolidation Resistance
- 1.07738 – 50D Moving Average
Support
- 1.07197 – May/June Lows
- 1.06897 – Intraday Consolidation Lows
- 1.06494 – Daily Consolidation Low
EURUSD gave a solid bearish candle at the close looking poised to take out the support around 1.07197. Given the strength of the said price point and its proximity we are looking for shorts only on a confirmed break of 1.07197. Take too long and develop long tails in the hourly charts from the said price and we may consider joining a bounce with limited targets at 1.07738 the 50D Moving Average.
