Euro Rally Losing Momentum?
Today’s Spotlight Market
The Euro has been on quite a run since mid-April, recovering over 900 pips over the period.? The bounce, however, seems to be losing a bit of steam of late.? The strength in the Euro had more to do with the weakness in US economic data and a relatively dovish policy statement from the Federal Reserve than strength in the Eurozone.? This is not to say that European data has not shown some silver linings of late, but the Greek economic mess continues to hang over the currency.
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Technical Notes? -? View Today’s Chart
Turning to the continuous chart, we see the Euro breaking out of a double bottom formation on the daily chart.? The measure of the move suggests that the Euro could test the 1.1600 area on the daily chart.? The Euro closed above the 23.6% Fibonacci Retracement level yesterday, as well as the 100-day moving average.? The next test for the Euro could be the 38.2% retracement around the 1.1792 mark.? The RSI is showing overbought levels, which could weigh on prices in the near-term.
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