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EUR/USD stalls again

On Friday, as covered here in early updates, the risk averse move that saw the dollar rise during the Asian session did not deliver a move below 1.0600 in the EUR/USD. The low seen was set at 1.0611 and so once again the interim double bottom (at 1.0601 and 1.0602) remained intact. The rise that followed seemed to have very chance to reach its first corrective objective, at 1.0709 (38.2% of the 1.0885-1.0601 fall). However, in the event the Euro stumbled again and could not get any higher than 1.0677. It subsequently fell back into the European close, to a low at 1.0640, before later closing the week at 1.0656. That was all seemingly due to US yields simply refusing to back off into the weekend and remaining very close to 5% in the 2 year note. Beyond any short term moves, the prospect of the ECB out-cutting the Fed is now more than a live prospect it would seem and that is without the growing belief; that the Fed may even have to raise rates again. So, gradually more and more analysts are shifting their outlook for the EUR/USD and calls for parity in the exchange rate are gathering pace. Overnight the EUR/USD has held a range covered by 1.0651 to 1.0671. It is just now trading at 1.0663 

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