After dipping down to 1.3590 after the European CPI estimate of 0.5%, the pair rallied rapidly to 1.3648 before sellers returned
After dipping down to 1.3590 after the European CPI estimate of 0.5%, the pair rallied rapidly to 1.3648 before sellers returned. It seems the market either bought the fact, or looked more closely at the regions unemployment rate, which fell 10 basis points to 11.7%. Key resistance is seen at the neckline to the double top pattern at 1.3672, so a test of this level in the short-term and subsequent rejection would be bearish and suggest the market is ready to head to the double top target some 300 points lower. At 19:00 tonight we get the Europe's Q1 GDP report and the market expects no change in the revision at 0.2% mom. With the ECB meeting tomorrow the market is looking at the EUR in earnest and the fact we saw a massive bearish monthly reversal last month is in fitting that at 1.3993 the highs have been seen.
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