Update for: 2011-08-22 - 2011-08-28

Posted on: Sunday, 21 August 2011 13:12


EURUSD: 1.4395

 Short-Term Trend:  sideways

Outlook: EUR attempted a rally last week but found resistance at 1.4516 and pulled back. As we have noted before, the key resistance level on the daily chart is 1.4530/40 and only a firm move abv there will indicate the next leg higher is under way. Until that happens, EUR/USD is in trading range. The daily oscillators are neutral now but the fact that the single currency finds support at higher levels each time it pulls back is a sign of strength. Therefore, we continue to like the upside here and think that ultimately EUR will go higher twd 1.5000/1.5100 level.
On the downside, only firm break below 1.4055/45 negates as such a move will indicate a downside breakout has occured instead....

Strategy: Longs favorable on break of 1.4540 with a potential target at 1.5040. This outlook is negated if EUR retreats more than 150/200 pts from its breakout.

Next Regular Update: Sun, 08/28/2011.


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