EUR/USD – Erratic Moves Continue with Downside Bias (Feb 25)
| February 25, 2010 | Posted by admin under Day Trading Ideas, Stock Market Analysis, Swing Trading Ideas |
The choppy trading continues as the EUR/USD moves within a trading channel with a downside bias. The hourly chart give us a good snapshot – swing highs are staying in tact as the pair experiences trouble in reaching major swing highs, but new lows have been made. The strong trend has subsided for the time being though, as the market is showing strong short-term retracements after putting in new lows.
As mentioned in previous analysis pieces, since many of the levels within the current channel are insignificant, movements can be erratic and unpredictable. Despite this, the bias remains down on all time frames.
Support was just broken through at 1.3500. If the rate can remain below, the target is former lows at 1.3460-1.3440. That low is significant as a drop below once again confirms this market will continue in a downtrend. Short-term retracements can occur and resistance currently comes in at 1.3550, 1.3580 and 1.3630. 1.3700 is the significant and pivotal swing high beyond.
Break below the key support at 1.3440 has a target of 1.3400-1.3380.
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[...] Sorry, I will not be posting a EUR/USD analysis tonight. Also, the previous analysis is still valid as there has been no real shift in the outlook of this market. Yesterday’s analysis can be found here: http://vantagepointtrading.com/archives/2835 [...]