Forex Analysis

Choppy price action Friday. The Euro was lifted buy buy profit taking in the European morning and then was sold off after the much better than expected Durable goods orders numbers. Funds and sovereigns offers are capping the market @ 1.5730/40, but the US banks woes may weigh on dollar. While EUR/USD is below 1.5785 the best strategy is to sell the rallies. Above this level the 50% retracement @ 1.5830 is the next resistance and if the market climbs above we may see another life time high. Anyway, the focus is on the downside for now and if we break below Friday’s low 1.5660 a test of 1.5610 will follow and probably another leg lower towards 1.5540 and 1.5460.

This entry was posted on Monday, July 28th, 2008 at 7:24 am and is filed under Technical Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.