The sell signals are coming through now for the euro as the market formed a strong bear candle yesterday in a confirmed break of the five week uptrend. The question is whether this is now simply a trend break that turns into a consolidation, or whether it is something more bearish. The support band $1.0577/$1.0617 is now key as a breach would confirm bear control. The momentum indicators are certainly now deteriorating.
Euro lower in a quiet Wednesday trade
There are no major data releases from Eurozone today. The dollar rebound yesterday was helped by the political uncertainty surrounding the French presidential election, whilst it seems also that Greece is beginning to re-emerge as a risk factor too. This has taken the trade weighted dollar index back above 100 once more, however with Treasury yields around two week lows, it is difficult to see much real traction in a strong dollar move right now. More likely is that this is a consolidation within the move to safe havens, with the yen and gold just consolidating recent breaks.
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