Signals are weak but rallies to find sellers in EURUSD
Bundesbank head Jens Weidmann stated that substantial asset purchases beyond September do not seem to be required, maintaining expectations of a small taper period into year-end. The euro remained under pressure ahead of the US open Thursday and EURUSD declined to fresh two-week lows below 1.2220 on long liquidation.
- Closed the day little net changed.
- The 161.8% Fibonacci extension is located at 1.2210 from 1.2538 to 1.2335.
- The medium-term bias remains bearish.
- Immediate signals are hard to interpret.
- As this corrective sequence continues we look to set shorts on a rally at better risk/reward levels.
- Bespoke resistance is located at 1.2322.
- Intraday signals far from strong.
Entry: we look to sell at 1.2322.
Targets: 1.2210 and 1.2124.