EURUSD - The EURUSD nearly tagged the short term resistance line this morning (drawn off of the 5/1 and 5/7 highs) on the spike through 1.3550. We wrote yesterday about the alternate count that has a correction ending at 1.3462.
However, with sentiment still extreme (British Pound Trend Change as Speculators Liquidate Longs) we favor lower prices. The aforementioned trendline resistance along with the 10 and 20 day SMA (1.3555 and 1.3582) also favor bears. In fact, the 20 day SMA has changed from positive to negative slope. The last positive to negative slope change occurred in late December, just before the EURUSD fell to 1.2865. We are bearish against the trendline, which comes in near 1.3560 (today?s high).