• 658 days Will The ECB Continue To Hike Rates?
  • 658 days Forbes: Aramco Remains Largest Company In The Middle East
  • 660 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,060 days Could Crypto Overtake Traditional Investment?
  • 1,064 days Americans Still Quitting Jobs At Record Pace
  • 1,066 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,069 days Is The Dollar Too Strong?
  • 1,070 days Big Tech Disappoints Investors on Earnings Calls
  • 1,071 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,072 days China Is Quietly Trying To Distance Itself From Russia
  • 1,073 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,077 days Crypto Investors Won Big In 2021
  • 1,077 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,078 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,080 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,080 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,084 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,084 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,085 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,087 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

EUR/USD: Short-Covering Rally is Showing Signs of Weakness

EUR/USD is showing signs of renewed weakness, after the recent shortcovering rally from extreme momentum and liquidity conditions (with net short positions over 2 standard deviations from the yearly average).

However, a bearish “shooting star” pattern is now pressuring the rate back into its declining channel resistance. While price activity holds near here, we prefer to sell into this bear-rally or new trend lows.

Near-term resistance remains overhead at 1.3000/77 (psychological/04th Jan high). Only a sustained break above here will offer a stronger recovery into 1.3197 (see top chart insert).

Meanwhile, the bears need to push back beneath this year’s new low at 1.2624 to resume the major downtrend into 1.2600-1.2530 (target zone), toward lower support at 1.2240 and 1.2010.

Inversely, the USD Index holding steady under its 12-month highs, still pressured by old resistance at 81.31/44 (Nov 2010/Jan 2011 peaks).

Key support at 79.50 (psychological/pivot level) is likely to hold and help re-launch the greenback’s recovery (already up 10%), which is part of our bullish cycle strategy for a further 20% gain over the multi-month period.

Daily Technical Report

 

Read the Report

Back to homepage

Leave a comment

Leave a comment