2012-01-03_0211_EurUsdIn early trading (this week) the Euro has found a some traction off of weekly support, touched last week during low liquidity holiday trading.  1.2857 was the low printed last week and today’s (Tuesday’s) early trading has us up slightly more than 100 pips off that low.

There is still downward momentum on this pair on the higher timeframe charts, such as the daily, however some indicators are showing signs of divergence which indicates a possible slowing of bearish action that could turn into a reversal of sorts.  I’m not convinced and I’m not going bullish on the EURUSD, but it’s something to note and keep an eye on in the days to come.

For now I’ll be watching some lower timeframe charts for resistance levels that could attract sellers and expectations will be reigned in as far as profit targets are concerned since the divergence is showing.