The EUR/USD was unable to sustain upside momentum which brought it ot a fresh 3-week high of 1.4520, and has since dropped back down below the 1.4500 techincal barrier to settle around 1.4475 by mid-day over the old continent.
Carol Harmer of CharmerCharsts.com suggests: “We see declines back to minimum target of 1.4425 and this should ease the short term overbought scenario. Here we would expect sellers to cover initially. However a loss of 1.4400 would weaken the market further, leaving 1.4360 targeted. Here buyers are expected back into the market and they will hold unless we lose 1.4325.”
Harmer adds: “Now if after correction Euros bust through 1.4510 we would expect sellers to run for cover and for buyers to return with a vengeance and then we are looking at the market coming back to test the June highs of 1.4700 area.”