EUR/USD
Choppy trading over the past few days leaves EUR/USD ending the week still looking overbought (with the slow stochastic oscillator rolling over bearishly on the daily chart) and trend resistance on the daily chart at 1.3311 just about holding the EUR advance. Overbought stochastic oscillator signals have done an OK job of calling the major highs of late (bearish signal confirmed by a move back under 75%). We also note that that daily trend resistance coincides (roughly) with strong, overhead resistance on the weekly chart (below). While the EUR has popped higher today, we rather think that the balance of technical risks suggests that EUR strength may not persists and that short/medium-term risks actually point lower overall. Bullish prospects are only enhanced by a sustained move above 1.3412.
