December 8, 2008 05:34

Forex Signal – EUR/USD Still Ranging; Selling Rallies

By:

12-08-08

5:15a GMT – EUR/USD is still ranging (see my signal here from last week) in the larger 1.3075-1.2475. The fundamentals have not drastically changed even with recent developments in the Fed and across the pond in Europe. Traders are generally negative on both economies, but the Europe Central Bank still has room to lower its interest rate. Overall I am concerned that the pair has found near term support at 1.2400 and a base has formed. This would make the pair overall bullish and makes looking for candlestick confirmations and other technical indicators such as RSI to confirm your trades that much more important. Nearest resistance is at 1.2800.

Trading Idea: look for bearish reversal confirmations around resistance at 1.2800 with short targets preferred down to 1.2725, 1.2600 and possibly a challenge of 1.2550.

(click to enlarge)
 

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1 Comment on "Forex Signal – EUR/USD Still Ranging; Selling Rallies"
  1. Reply
    #
    Comment left on:
    December 8, 2008 at 08:38
    flbroker says:

    The new resistance level is now 2900.

    I’m trading the 30M chart only and it appears oversold on all charts. Right now it looks like bulls are loosing strength but I can’t say what’s going to happen next.

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