EUR/USD-Continues to Elude It’s Trending Ways

The Following is you daily EUR/USD outlook for March 19, 2010.

The EUR/USD is generally a strong trending currency, but for well over a month the pair continues to elude it’s tendency.  Moving in a choppy fashion making higher highs over the past couple weeks, indicating an upward bias, the drop on Thursday back below 1.3640 once again shifts the short-term outlook back to neutral.

Previous posts have included warnings about the high likelihood of false breakouts, and this continues to be a low probability environment for trend traders.  There is a need to avoid the wanting of being the first person into an emerging trend – a legitimate breakout will provide ample profit opportunity.

From Yesterday’s post here are levels to watch within the range:

“A drop below this support level [1.3640] indicates a move test further support at 1.3620, 1.3540 and range lows if 1.3520 is penetrated.”

Targets on the upside are: 1.3840, 1.3920 and 1.3940-1.3960.  Resistance inside 1.3820 comes in at 1.3650 and 1.3750-1.3760.

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Cory Mitchell, CMT

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