As I mentioned earlier, the market seems to be on a better two-way footing than it was just a day ago, There is a willingness to sell rallies today that was not there yesterday…
Several high profile shops have but out USD buy recommendations today and the 100-day moving average in EUR/USD at 1.3410 is again proving to be a difficult hurdle for EUR/US to hold above for too long.In fact, it reminds me a lot of the 1.30 level on the downside…We tend not to hold below that level for too long…
A sustained break of the 1.3410 level does suggest a move toward the 1.3700/1.3800 area based on the breakout from the declining wedge on the charts yesterday.