EUR/USD-Possible Re-Test of Lows, Choppiness Continues

The broader perspective on this pair can be seen here: EUR/USD and Stock Market Weekend Briefing.  I will not post a lot in this daily outlook for March 22 since I continue to think there are better opportunities until a legitimate breakout occurs.

As we begin trading this week, the pair continues to be weak after the selloff late last week.  Having broken below support at 1.3540 a test of range lows is quite possible.

Support comes in at 1.3500-1.3480, followed by range lows between 1.3450-1.3430.  Movement below indicates another leg down in the downtrend.

Resistance comes in at 1.3550 and 1.3590-1.3600.  Beyond this resistance comes in at 1.3640 and 1.3690-1.3700.

Ultimately the pair remains in range within a longer term downtrend.  False breakouts remains a high probability as we have already seen several.

Cory Mitchell, CMT

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