EUR/USD: Short-Term Structure Favours Supply Near 1.2300
EUR/USD has continued lower, as expected, after forming a minor double top at 1.2443. Short-term structure continues to favour fresh supply on a return to the 1.2300 region. A push back over 1.2342 (06/08/2012 low) is required to dampen this near-term bearish structure.
The US Dollar Index is also showing signs of strength with a break back over 83.508 (02/08/2012 high) warning of a fresh leg higher to break over the annual high at 84.100.
Longer-term a return to the 1.1000 region, close to multi-week channel support remains feasible.