AUTOREFRESH 
EUR/USD leaning up against downtrend resistance
By Jamie Coleman || March 16, 2010 at 13:16 GMT
|| 10 comments || Add comment
EUR/USD has been flirting with the downtrend that has been in place since early December in quiet US trade. We’ve edged above the trendline the two prior sessions on an intraday basis but have yet to close above it. Given the lack of momentum in the market, I get the sense that we may break the downtrend by moving sideways rather than exploding to the topside…
1.3741 is where the trendline is drawn today, for what it’s worth.
Reuters reports –
US Senate Bill to be unveiled today threatens stiff penalties on China if it does not revalue its currency . Whats your take on this Jaime?
The FOMC rate decision is later in the session, perhaps the London fixing will have some spark … looking at EURUSD 1.3691 for support
Keep in mind that, 76% of the time after FOMC statement, stocks end the day “up”.
Hi bear, I touched on it yesterday…I think both sides need to chill the hell out…trade wars amid deep recessions lead to depression…cooler heads and all that…White House held out n olive branch yesterday…
Ultimately, it becomes a game of good cop/bad cop, if used correctly. Obama can go to the Chinese and play the good guy, saying give me something or I’ll have to let that snarling Congressional pit bull off its leash..but you can’t be confrontational with the Chinese…requires lots of finesse
Agreed, you ever tried gettin a bargain out of a chinese store owner… http://www.youtube.com/watch?v=-qtrAMK7_Qk&feature=related
EUR/USD has also inched above the 4 hour 200 moving average, the first time it has done so since the downtrend began around 1.5
My 2c: moving averages and trendlines are good for trending markets, like the last nine months of 2009. Range-bound markets are better described, explained and predicted with support and resistance levels.
As usual you’re right Jamie… I had it bounce off the trendline at 1.3653 yesterday. Thanks for sharing your knowledge.
Spot on JR, its knowing the difference between oscillators and indicators and when to use them that counts.
On second thought, the market for eur/usd, has been in a distinct downtrend since december. Anyhow, I’m keying off the 1.343 and 1.379 levels- and it seems like the market is too. I imagine that once the options expire, then eur/usd will get up over 1.38 and the real fun (think: hedge funds and “career trades”) will begin.