EUR USD Setting Up for Break to 1.4444

A weaker than expected U.S. Durable Goods Report is helping to drive down the EUR USD. This report indicates that the economic recovery in manufacturing will be slow and labored.

Daily Analysis

EUR USD

A weaker than expected U.S. Durable Goods Report is helping to drive down the EUR USD.  This report indicates that the economic recovery in manufacturing will be slow and labored.

A pick-up in demand for higher risk assets overnight was helping to boost the Euro. A slightly better stock market was helping to shore up this market. A substantial retracement should drive it higher, but don’t look for new highs for the week on this move. Expectations are for the Euro to go into a consolidation phase if the U.S. equity markets start a correction.

Technically, the EUR USD is in a position to form a weekly closing price reversal top following a close under 1.4710.  Once confirmed this pattern is likely to trigger a 2 to 3 week break.  The first downside target is 1.4444.