Forex Marketz Daily Forex News – Fully Markets Update
EUR/USD (1.1172)
Strategy: Stand Aside
- Resistance Levels: 1.1415, 1.15, 1.1515
- Support Levels: 1.1125, 1.0990, 1.0550
The euro continues to lose value against the US Dollar. Last week, we saw its biggest intraday, then daily decline, since August 2010 as the EUR/USD continues to fall through support levels. Please see the below daily MT 4 chart.
We have fallen below 1.1255 and we are now testing the support at 1.1125. A daily close below this level will see a challenge of the technical support at 1.0990. Should the euro reverse direction and push higher, the EUR/USD needs to close above 1.1415 to challenge the technical resistance level and key pivot at 1.15.
Entering a short trade is very tempting right now. Especially in line with our long-term outlook on the euro which remains very bearish. However, I am going to stand aside right now. Why? First off, look at the RSI and note the positive divergence. This means downside momentum could be waning. Secondly, the Greek elections, which the left has declared victory in, could mean austerity is in trouble. This could derail and positioning on the price level. With all that happening, I am opting to stand aside, wait for my bounce then enter a short trade.
