May 22, 2009 5:15 am

Forex Signal – EUR/USD Resistance Broken

By: Mark

5-22-09

6:11a GMT – Booked good pips yesterday off the 1.3720 bounce, looking to reset on a dip before the weekend if possible. Volatility overall in the forex markets has been coming down in recent weeks and months as big money becomes more comfortable with the level of risk the carry trade offers. As a result I expect the Euro to continue to gain strength as its interest rate is more attractive. However, deteriorating fundamental conditions in eurozone threaten to derail the carry trade. Technically the pair is overbought right now so I will look to buy near support on a dip.

Trading Idea: Nearest support is at 1.3720, will look to reset on a bounce there with tight stops. Targets at 1.3775, 1.3825 and 1.3895.

(click to enlarge)
Forex Signal   EUR/USD Resistance Broken

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