EURUSD: Decent bounce seen over the past two sessions though the pair is trading poorly this morning and remains beneath the trend resistance from the December high which currently comes in at 1.35.
Recent price action suggests that one should be very careful with thinking that EURUSD will rise and fall according to risk appetite only. The Dow Jones Industrial Average (future), in blue above, rallied aggressively on April 9th but EURUSD fell. Is this an early warning signs that the market relationship is coming to an end
and that other dynamics are taking over on EURUSD?
Overall the bearish short term bias is still in place and we expect a test of the 55 dma at 1.3014 in the short term. A breach of that could lead to extended losses possibly as far as the 1.2750 area.
EURUSD – Further short term losses are still likely
Linear Mode
