The Euro initially tried to recover on Thursday but then turned around to show signs of weakness. Ultimately, the 1.02 level is an area that had been important previously, so now that we are trying to break above there, it’s interesting to see that the sellers have stepped back in. This is a market that has formed a bit of a potential inverted hammer, so it’ll be poignant as to which direction we break at this point. If we turn around and break above the top of the candlestick, then it’s possible that the market could rally all the way to the 1.04 level. This is an area that previously had been a massive support, so a lot of “market memory” could come into play in that area. I would anticipate seeing a lot of sellers in that general vicinity, as there is a strong downtrend. The 50 Day EMA is now slicing through the 1.06 level and driving even lower. I do believe that the 50 Day EMA is going to reach the 1.04 level sooner or later, perhaps sooner being the keyword.
