After a strong bullish week for the Euro last week, the hourly chart is showing signs of that trend being short lived. A look at the hourly chart shows that after hitting the week’s high at 1.2985 the Euro sold off and then the next buying rally was unable to print a new higher high. What we need to look for now is a new swing low and bearish momentum to gain traction below 1.2880’s. If price does in fact make that new low, we should see, at a minimum, a healthy retracement of last weeks bullish move.
Fundamentally, we’re keeping an eye and ear on the Greek bond negotiations as well as news and rumors from the EU finance ministers meeting on Monday & Tuesday, January 23-24. Then on Thursday the 26th, stayed tuned to the Italian long term bond auction.