The Euro stopped falling

Technical Currency Notes:

The Euro stopped falling at 1.5625 around noon yesterday, close to the most recent low from July 7 at 1.5608 but no cigar. A price has to make a lower low to get a “trend,” and euro bulls (presumably) defended the level. Predictably, failure to penetrate the old low aroused the FX trader instinct of “If you can sell it, buy it.” The Euro has now moved up over 100 points from yesterday’s low.

We suspected a bounce but 100+ points is quite a lot for less a day. It can get to 1.5825 or even 1.5875 before we can say the dip failed to turn into a reversal. In other words, we are getting a correction within a correction.

Got that?

The picture is not the same across all currencies. The Pound Sterling seems to be rising for its own reasons independent of sentiment in Euro vs US Dollars. The US Dollars still has plenty of promise against the Japanese Yen, where the downchannel may be decisively broken. Against the Canadian Dollar, the US dollar is at a key resistance level with rising momentum—no correction there, at least not yet.

Bye For Now

Barbara Rockefeller