EUR/USD – Still No Confirmation
| March 5, 2010 | Posted by admin under Day Trading Ideas, Stock Market Analysis, Swing Trading Ideas |
The following is your daily EUR/USD outlook for March 5, 2010.
The 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 trendline at 1.3800 in order to confirm a larger correction.
At the moment, the pair remains choppy. Longer term trend remains down, while we have higher lows and higher highs over the last few days.
I do not give much significance to support and resistance within this range. Although some support has developed just above 1.3540, and is likely at 1.3520, 1.3490 and key support at 1.3440-1.3430.
Upside resistance, not significant, but likely at 1.3620-1.3640, 1.3700 and then the resistance level to add evidence to a further move higher – 1.3740
Non-Farm Payrolls out tomorrow could be the catalyst in moving this pair back into a trend, and will at minimum expand volatility.
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[...] On Thursday and Friday in the daily analysis, I said that we needed confirmation for the breakout. False breakouts remain a high probability thus confirmation is needed. The pair did no confirm the break and finished the week well off the high. Thus the pair remains within the range. [...]