In each attempt, the EUR/USD bounced back up, failing to go lower.
It is worthwhile to note that the highs made by this pair are getting lower.
An apparent trendline is seen, sloping downwards.
From a technical point of view, if bearish momentum prevails, we can expect support at the daily trendline, followed by the major support at 1.4200.
However if bullish momentum develops, we can expect expect resistance at the top trendline, followed by the major resistance at 1.4400.
As of now, we can be seen to be bounded by 1.4400 and 1.4200.
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Let us now look at how our usual market clues performed.
Oil has broken through it's support at $70 and is currently diving towards $65.I tend to attribute a lower oil price to increased USD strength. We have not seen it significantly yet.
The S&P 500 has been amusing me these days.
Despite negative news releases, it fought hard to remain above 1000.
The latest bounce up circled above is one example.
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In my opinion, we are rather overstretched in the current bullish sentiments.
The recent non farm payroll reports a fewer number of jobs being lost.
Although this is good, the market chose to ignore the fact that unemployment rate in the US is now at a 26 year high at 9.7%.
A correction across all markets may be due and perhaps oil is the first to start.
Trade safe.
