FOREX: EUR/USD - SIDEWAYS BUT MODERATE BIAS TO THE DOWNSIDE

Upward pressure, which technical indicators implied was present in the market, failed to materialize significantly higher values for this pair.

Some charts have printed the highest high for last week at 1.3093, achieved on Monday, February 9th. Even that was not sustainable as the market dropped down to exactly the middle of it’s two week old trading range.

EURUSD has moved much less, either up or down, than some other major currency pairs linked with the USD, such as GBPUSD.

Once again, the technical indicators are of little help in suggesting probable direction for this week. It’s probably more valuable to determine significant areas of resistance and support and monitor price reaction to these zones, although I have a moderate bias to the downside.


Daily EUR/USD chart as at 12 February 2009 using NextVIEW Advisor. Click on chart for larger view.

TECHNICALS

MACD – rising slightly in negative territory
Stochastic – virtually flat
Price Pattern – a slight bias to the down side.
R1 – nearby resistance around 1.3090
R2 – 1.3240
R3 – 1.3740
S1 – nearby support at 1.2700
S2- 1.2580

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Article and Commentary by Don Schellenberg. A trader and trading coach, he is a noted expert on Market Structure, Elliott Wave and Fibonacci. He trades the forex market.