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EUR/USD pair collapsed, coming close to a deadlock for a moment above the 23.6% Fibonacci retracement of the 05/08-05/22 rally at 1.5692 before declining down to the 61.8 level at 1.5488. The pair reached consolidation between that and the 50% Fib level.
It shows that an upward slowing direction line linking recent lows as well as a downward resistance level at the highs. These facts reflect to EUR/USD twine around for consolidation in the very near future. Short-term upside momentum is expected but basic moves enclosed in the pair favor an overall bias to the downside. As a result, we predict any potential upward movement capping out near 1.57 and a following break downward out of consolidation aiming below 1.53.
Speculations:
EUR/USD
Strategy: Bearish below 1.5700, Targeting 1.5287
GBP/USD
Strategy: Bearish below 1.9760, Targeting 1.9400
USD/JPY
Strategy: Bullish against 102.90, Targeting 105.19
USD/CHF
Strategy: Flat, waiting for confirmation
USD/CAD
Strategy: Flat, waiting for confirmation
AUD/USD
Strategy: Bullish against 0.9287, Target TBA
NZD/USD
Strategy: Bearish against 0.7940, Target TBA
22:05
Posted on Jun-03-2008
