EUR USD Rally Fizzles; Market Set Up for Reversal Top

The morning rally in the EUR USD seems to have fizzled as there was nota lot of trader interest in the Euro just over 1.44.  Besides that therally just seemed a bit too labored to be able to sustain anysubstantial upside movement.

Intraday Analysis

Euro

The morning rally in the EUR USD seems to have fizzled as there was not a lot of trader interest in the Euro just over 1.44.  Besides that the rally just seemed a bit too labored to be able to sustain any substantial upside movement.

The break in the equity markets may be a sign that trader appetite for risk is diminishing.  Weakness into the close in the three main indices is likely to contribute further weakness in the EUR USD.

Technical traders should be watching for a lower close and a close below the opening to generate a daily closing price reversal top.  This pattern usually suggests a 2 to 3 day break or at least a 50% retracement of the last rally.