EURUSD - Cautiously Bearish below 1.3507

More PIA-first, 02 December 201102 December 2011 Although a minor net improvement was posted, EURUSD failed to extend Wednesday’s gains to any significant degree. Intraday trading was volatile with both lows and highs rejected and with all price action contained within 1/3 of Wednesday’s parameters. This ‘Inside Day’ highlights a degree of investor indecision but with selling interest apparent above 1.3500 the immediate outlook has a mildly negative bias. In view of this our call is Cautiously Bearish below 1.3507. The immediate objective is 1.3443, yesterday's European afternoon low, with a move beneath that point targeting 1.3418, yesterday's base, or even 1.3381, half of Wednesday’s net gains.
The risk to this call is that buying pressure is stronger than currently assessed although a fresh outright Buy signal would only be generated by a move through 1.3507. Prices and sentiment should then improve to 1.3532, this week's peak, then 1.3569, the high from 22 November.