SPOT EURO/US DOLLAR
While the medium term Euro bearish outlook is undisturbed with lower targets still readable in the weeks ahead, shorter term trends have again flattened out with values consolidating within a fresh range.
Expect immediate weakness to again uncover support starting in the 1.2350/70 area with a clear and sustained break beneath here required to regenerate downward momentum and confirm targets in and around 1.2040/60. Until/unless achieved further choppy two-way activity is to be anticipated with local resistance visible at initially 1.2600/30 with a decisive move above here needed to trigger better corrective gains.
TRADING STRATEGY: Would continue to utilise corrective bounces to probe the short side of the Euro.
DOW JONES – SPOT INDEX
Overall bullish patterns remain firmly in force with little evidence of a top as yet. Expect prices to challenge the 18000 area in the days ahead where resistance should be encountered and at least a pause for breath experienced. Believe the speed…..