It seems that sitting on our hands last night and today was the prudent move as the New York ranges and volumes made it feel like summer had already arrived. US 10-year rates made a sneaky move back above the 4.10% level I mentioned yesterday, as did EUR/USD back towards the 1.3400 level right on the New York close. Bigger picture, I still believe that EUR/USD is headed lower because of the following two reasons. First, as I mentioned in previous sessions, EUR/USD remains below former trendline support and is bumping up against this level now serving as resistance. The candlestick patterns forming against the newly-found resistance suggest buyers are having a hard time up here.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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