EURUSD breaks to the downside

Written January 24, 2012 at 8:44 AM EST by  

The action in the EURUSD has been very up and down for most of the trading day. The price peaked when the better PMI data was released.  The choppiness has converged the 100 and 200 bar MA. The last peak before the recent fall to new day lows held those moving averages (see blue and green lines in the chart above).  The bias is to the downside on the back of the recent move. Traders will not want to see the price move above the 100 and 200 bar MAs. Staying below the 1.2990 level would be even better for the bears/sellers (38.2% level).  Continued momentum to the downside is expected.

The move to the downside has increased the days trading range to around 100 pips. It is still below the 129 pips that is the average over the last 20 days of trading. In other words there still is room to run for the pair.

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