After an early drop to 1.2805 yesterday Euro made a reasonable effort to resume its rally.However the volatility later in the day (swinging 1.2830 -1.2890 - 1.2810 - 1.2875 – 1.2830) makes it a little difficult to place the exact position of the trend.I think that Euro will rise again and get above the previous day’s high of 1.2910.However, I am not confident that it will push above the main 1.2980 high on this occasion.A failure to hold above 1.2900 will be an early sign of weakness and a break of 1.2810 will confirm it.If 1.2980 does give way then Euro will have the opportunity to extend the rally to 1.3125 and 1.3670.
Sterling rose briefly above 1.9130 but it only completed the corrective leg of an irregular pattern.Expect a drop back to the 1.9000/30 zone today before the rally continues towards 1.9325.
Dollar/Swiss should drop into the 1.2150/90 range today to complete its decline.
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