Forex Special - The current level of trading the Euro has experienced throughout the week, around the 1.2720 range on short coverings, apparently has an expiration date set in front of it.
The pullback has a lot of consensus, Nicole Elliot from the Mizuho Corporate Bank explains: "Inching up to the top of the daily Ichimoku ‘cloud’ with most economists agreed that this short-covering rally is temporary and that the next move for the Euro is South. The Euro is slightly overbought and momentum is bullish, and the 9-day moving average has done an excellent job pushing it higher".
The seemingly unavoidable retreat has a potential alternative though, "A weekly close above 1.2800 will probably set off another round of short-covering", Nicole Elliot says.
EUR/USD (Jul 15 at 10:21 GMT)
1.2768/72 (0.21%)
H 1.277 L 1.2708
1.2768/72 (0.21%)
H 1.277 L 1.2708
| S3 | S2 | S1 | R1 | R2 | R3 |
| 1.2669 | 1.2701 | 1.2732 | 1.2748 | 1.2779 | 1.2811 |
| [?]Trend Index | [?]OB/OS Index |
| Strongly Bearish | Neutral |
| Data updated on Jul 15 at 08:00 (15-minute timeframe) | |
