ForexPros Daily Analysis June 20, 2011
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What Is Next For EUR/USD?
The common currency is on the hot seat again. After being quiet for some time, the Greek sovereign debt problem resurfaced as a dominant market mover and the Euro’s price behavior reflects it. Its daily chart indicates lack of commitment by market participants.
The EUR/USD had a nice rally in the early part of the year, reaching a high of 1.4939. That was followed by a pull back to 1.3968, very typical after a strong advance. Since then, however, the price has been indecisive – it has made neither a new low, nor a high, and is moving in smaller in swings.
Drawing trend lines here creates a symmetrical triangle, with the EUR/USD quickly approaching its apex. On Thursday the lower trend line was tested, the price dipped under it, but closed higher for the day, confirming the indecisive phase of this market. Hopefully, that should not last much longer.
Given where the price is located within the triangle, we can expect a move relatively soon. Technical indicators are not helpful now, with the MACD and the RSI at neutral levels. It is best to wait for the EUR/USD to break through either of the trend lines before placing trades based on this chart.
Forex Trading Analysis written by Mike Kulej for ForexPros. For more information about currency charts visit ForexPros.
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