Despite all the gloom and doom coming out of the Eurozone the charts on the EURUSD spent all day yesterday showing a real reluctance to commit to a genuine move to the downside with price almost touching 1.3700 at some point.
Fundamentally speaking, one would be hard pushed to justify a long Euro position under current market conditions especially with the Greek default almost a foregone conclusion and a downgrade of major French banks seemingly on the cards.
Or could it be that the US Fed rate decision coming up next week is keeping traders from taking up dollar positions?
Be that as it may, we see from the one hour chart the formation of a triangle which would imply imminent break out as the 1.3700 resistance is tested again and again.
