Friday’s indecisive price action was overturned with fresh selling pressure yesterday. This move took EURUSD to the most negative levels traded since July 2013 and the move has continued in Asia.
The speed and scope of the decline means intraday sentiment is oversold but with momentum still negative and the Keltner channel trending lower we look for profit taking to be temporary with potential for the downside to target 1.2860 and 1.2841.