Euro saw an indecisive trading Tuesday with a tight whipsaw in EURUSD waiting for fresh catalyst. With the US market out on a holiday and little to move thighs from the Eurozone we expect to see the indecision to continue though we are keeping a bearish overall bias given the widening rate differential. Calendar wise we have an Economic Bulletin from the ECB tomorrow though this is unlike to be market shaking less we have some unexpected revelations.
Resistance
- 1.08523 – Post Rate Cut Pullback High
- 1.08159 – Intraday Consolidation High
- 1.07682 – 50D Moving Average
Support
- 1.07100 – Intraday Consolidation Low
- 1.06676 – Low For June
- 1.06494 – Low for May
EURUSD is currently under the 50D Moving Average with with candlesticks suggesting indecision. Overall we maintain a bearish bias with the breakout from May/June consolidation in the daily charts. Absent US markets however we are unlikely to see any sustained price action, as such our preference will be to look for shorts at the approach of 1.07682, possibly well short of the figure as long as hourly charts have long wicks. We prefer staying off buying EURUSD for now.
