Short-term corrective EUR/USD developing
The anticipated break lower has been seen, with EUR/USD extending the November bear trend to reach 1.0400.
Support is appearing at 1.0350, just above the 1.0330 year low of January 2003, as oversold momentum studies unwind, with a corrective bounce now highlighted as short-covering develops.
Congestion around 1.0600 is expected to attract, with a break opening up the 1.0650/55~, 23.6% retracement of the May-December fall and high of 30 December. Still higher is the 1.0715~ break level from January and 38.2% retracement of the November-December fall, where bearish background studies could promote consolidation.
Following corrective gains, fresh losses are looked for, with a close below 1.0330/50 opening up parity, as the dominant bear trend gathers fresh momentum.
Support is appearing at 1.0350, just above the 1.0330 year low of January 2003, as oversold momentum studies unwind, with a corrective bounce now highlighted as short-covering develops.
Congestion around 1.0600 is expected to attract, with a break opening up the 1.0650/55~, 23.6% retracement of the May-December fall and high of 30 December. Still higher is the 1.0715~ break level from January and 38.2% retracement of the November-December fall, where bearish background studies could promote consolidation.
Following corrective gains, fresh losses are looked for, with a close below 1.0330/50 opening up parity, as the dominant bear trend gathers fresh momentum.
