Thursday’s report highlighted a lack of clear direction for sentiment. That proved valid as price action was limited in range and net movement. Wednesday’s 14 month low was not retested but a profit taking attempt was limited and the highs not held. Taken in the context of a hugging of the lower end of a negative Keltner channel, we look for further downside.
Sell in 1.2725/30 area and any 1.2755 rally.
Stop is 1.2791 bid.
Targets 1.2698, 1.2662 or even 1.2629
Closes 4pm London time