During the past week or so the EUR/USD has been a very well behaved currency pair and a delight to trade. After taking out the 1.3380/00 region (highs set back in Jan) we have not looked back. And, surprise surprise, where did the EUR/USD stop overnight and bounce from?? 1.3416!! And not a bad little bounce either.
A quick look at the daily EUR/USD chart will give you a pretty good idea of what i am talking about. It doesn’t take a genius to work out that there are going to be solid stops below 1.3380/00 and sellers in the 1.3730/50 region with stops above. Overall the bias for the EUR/USD remains up and if we can take out the resistance at 1.3730/50 and the 200 DMA at 1.3850, then its off for a test of 1.4350/60. A break below 1.3380/00 introduces the risk of a move back to 1.3080/00.
Once again on the daily chart, the technical studies are currently working their way down from significantly overbought levels so expect to see some more 1.3400/1.3700 for now which makes it ideal to play around the edges.
Stops on shorts should be left above 1.3750 and stops on longs below 1.3380.
