EUR/USD has finally seen a significant pullback, enough to shake the confidence of the latecomers to a dollar bash (pun intended). It looks as though if we can consolidate below the 1.3725 area, we may build a right shoulder of a head and shoulders pattern on the hourly charts.
Fundamentals have not shifted very much, if at all today. Quantitative ease from the Federal Reserve looks increasingly likely and China has given Europe a big vote of confidence (though they also were Euro sellers earlier today, perhaps taking a page from Goldman…).
Near-term, the 1.3650/70 area is important support. Stops are building below both levels. Offers are seen in the 1.3725 and 1.3750 area on rallies. EUR/USD consolidates now at 1.3710.
