Another day of weakness in the Euro and once the trendline at 1.2960 broke, sellers were back in the market. The second trendline at 1.2899 also failed to hold and we came to 1.2840. The market remains looking under pressure and will do so unless we can climb back above 1.2960. Now as we know it is Reversal Thursday, and because of this we may well see the market trade higher.
However this is as long as we can stay trading above 1.2840/30. Failure to do so will leave Euros looking weaker to the March lows of 1.2745. Daily and 60 min charts still point lower but the 240 has turned slightly bullish, so please use this 1.2755/45 as a get out of shorts trigger.
Even if we trade below here slightly, there is more scope for this support to hold. So you may buy at these lower levels looking for a correction, albeit a short and swift one.
As stated, we need to clear 1.2960 to ease the downward threat. If we can do this we look for the market to rise and we would target 1.3020 to 1.3050, and then sell the bounce.
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