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    EUR/USD: lack of bearish news brings down-trend into doubt

       

    The pair has started to move lower after making a correction up to 1.1000 at the end of last week.

    It has now just recently pierced below 1.0900. The worrying thing is that there is no fundamental reason for the sell-off. Even concerns over Greece following an article in Le Monde which restated Tsipras’s fundamentalist position, may not be the reasons for the sell-off as if that were the case Greek bond yields would be higher and they are actually down on the day – so overall I am skeptical the move will extend much further.

    Nevertheless the mini-trend down remains intact and therefore expected to continue, so a break below the key May 27 1.0818 lows would probably confirm a more bearish leg lower to a target at the S1 Monthly Pivot at 1.0708.
    EURUSD01

       

    The pair has started to move lower after making a correction up to 1.1000 at the end of last week.

    It has now just recently pierced below 1.0900. The worrying thing is that there is no fundamental reason for the sell-off. Even concerns over Greece following an article in Le Monde which restated Tsipras’s fundamentalist position, may not be the reasons for the sell-off as if that were the case Greek bond yields would be higher and they are actually down on the day – so overall I am skeptical the move will extend much further.

    Nevertheless the mini-trend down remains intact and therefore expected to continue, so a break below the key May 27 1.0818 lows would probably confirm a more bearish leg lower to a target at the S1 Monthly Pivot at 1.0708.
    EURUSD01


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