I think it was about a week ago when I said it looked as though the easy money had been made in EUR/USD and it was gonna be tougher from here on out. Sheesh, it sure got tough.
There have been more false starts in the market over the last week than in a Buffalo Bills football game and participants have been whipped silly on both the long and short sides of the market.
Stepping back, what we can say clearly is that the impulsive nature of the uptrend is over and we are now in a consolidation of the 14 cent rally over the last month or so. The 10 day moving average is now moving sideways after acting sort of like an uptrend line for most of the last five weeks.
Technically, drawing a line off the 1.4160 high and the 1.4050 high yesterday, we get resistance at 1.4020 today. A break above that level might give the bulls a fresh dose of adrenalin. Otherwise, more consolidation ahead so long as 1.3700 holds.
