The
EUR/USD has a number of hurdles to overcome before a ceiling it established. I
am looking for a ceiling - for now - since the market trend has transitioned
into a sideways range. IT IS early in the transition but a “V” bottom is unlikely
here with the underlying fundamental picture and the 1.3050 to 1.3200 area is a
thick layer of resistance.
I’m not going bearish on the dollar nor bullish on the euro in a
longer-term picture. For now I will watch for a trading range to develop in
each. There is not a complete enough picture to drive either into a trend yet,
although Ben Bernanke did give the greenback a strong shove...off a cliff.
Past
performance is not indicative of future results
The EUR/USD has traded higher into the
resistance on the daily timeframe. This area - while 150 pips wide - is still a
reasonable range for the pair to exhaust within considering the average daily
pip movement. The expectation for exhaustion comes from the sideways market
trend that has formed as the 34EMA Wave moves at a “two to four o’clock” angle.
IF the 34EMA Wave were to begin traveling upwards at a “twelve to two o’clock”
angle, the expectation would then be for higher lows and higher highs.
Past
performance is not indicative of future results
The “Price movement range by day of
week” has an average of 150 pips per day Monday through Thursday. This makes
the 150 pip range resistance area on the daily a possible single session
trading range.
One thing to note as a follow up to my last update: The 50 period
SMA close was blown out of the water by
the dollar’s sell-off and now must be considered near-term support. The pair is
now battling at the 1.3100 major psychological level which is still 100 pips
from top of the trading range I have highlighted in this update.
As an active forex trader and Chief
Currency Analyst for InterbankFX.com I do write for a number of sites all over
the web and I am happy to say that I will be posting updates atwww.IBFXconnect.com. MyActivity Boardwill feature the trades from my trading account as well as
intraday commentary.
Start the discussion! Questions?
Comments. Leave it here at the Daily Forex Trading Edge for Raghee to
personally answer. Using the icons at the top of the article to forward this
update to a friend via email, post it on Google or Facebook or simply print it
out for reading later.
Forex
trading is one of
the riskiest forms of investment available in the financial markets and suitable
for sophisticated individuals and institutions. The possibility exists that you
could sustain a substantial loss of funds and therefore you should not invest
money that you cannot afford to lose.
Posted By:
Raghee Horner
Raghee Horner, chief currency analyst for Interbank FX, provides her personal daily trading tips and insights through Dailyforextradingedge.com. An experienced trader with over fifteen years in the markets, Raghee is the co-founder of EZ2Trade Software and has taught her brand of technical analysis and charting strategies to students all over the world. She is an international author and has taught currencies, futures, and equities trading for over a decade.
The EUR/USD has a number of hurdles to overcome before a ceiling it established. I am looking for a ceiling - for now - since the market trend has transitioned into a sideways range. IT IS early in the transition but a “V” bottom is unlikely here with the underlying fundamental picture and the 1.3050 to 1.3200 area is a thick layer of resistance.
I’m not going bearish on the dollar nor bullish on the euro in a longer-term picture. For now I will watch for a trading range to develop in each. There is not a complete enough picture to drive either into a trend yet, although Ben Bernanke did give the greenback a strong shove...off a cliff.
Past performance is not indicative of future results
The EUR/USD has traded higher into the resistance on the daily timeframe. This area - while 150 pips wide - is still a reasonable range for the pair to exhaust within considering the average daily pip movement. The expectation for exhaustion comes from the sideways market trend that has formed as the 34EMA Wave moves at a “two to four o’clock” angle. IF the 34EMA Wave were to begin traveling upwards at a “twelve to two o’clock” angle, the expectation would then be for higher lows and higher highs.
Past performance is not indicative of future results
The “Price movement range by day of week” has an average of 150 pips per day Monday through Thursday. This makes the 150 pip range resistance area on the daily a possible single session trading range.
One thing to note as a follow up to my last update: The 50 period SMA close was blown out of the water by the dollar’s sell-off and now must be considered near-term support. The pair is now battling at the 1.3100 major psychological level which is still 100 pips from top of the trading range I have highlighted in this update.
As an active forex trader and Chief Currency Analyst for InterbankFX.com I do write for a number of sites all over the web and I am happy to say that I will be posting updates at www.IBFXconnect.com. My Activity Board will feature the trades from my trading account as well as intraday commentary.
Start the discussion! Questions? Comments. Leave it here at the Daily Forex Trading Edge for Raghee to personally answer. Using the icons at the top of the article to forward this update to a friend via email, post it on Google or Facebook or simply print it out for reading later.
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
Raghee Horner