EUR/USD – Upside Breakout…Needs Confirmation
| March 4, 2010 | Posted by admin under Day Trading Ideas, Stock Market Analysis, Swing Trading Ideas |
The following is your daily EUR/USD outlook for March 4.
The EUR/USD broke above resistance at 1.3700. That pushed the pair up to interim resistance at 1.3740 (to 1.3750) on the way to the 1.3800 target as mentioned yesterday.
The pullback to the breakout point has occurred, moving back to 1.3688 and currently trades as 1.3707. A push back above 1.3750 would confirm the breakout. Trendline resistance intersects at 1.3800 which is the current target if resistance can be penetrated. Resistance beyond the target is 1.3835. Penetration of that point would put the pair in at least a short-term correction higher, making a retest of recent lows very unlikely over the next couple weeks.
Support has developed between1.3690, and can extend down to 1.3670. A drop below that level hints at a bull trap and a retest of support between 1.3610-1.3590. Below this, again, support and resistance lose their importance. That said, some support is likely at 1.3520, 1.3490 and key support at 1.3440-1.3430.
Markets have been very interesting lately, and sometimes traders need a little guidance….
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[...] EUR pulled back today, and currently trades near the middle of the former range. As mentioned in yesterday’s post on confirmation of the breakout, the pair needs to climb above the resistance now at 1.3740-1.3750 and then ultimately break the [...]