2009
FOREX: EURO/USD analysis
Filed Under (Finance Help) by Admin on 10-05-2009
This currency pair has been caught in a wide trading range for the past three weeks, in between the high of May 6th at 1.3581 and the low of May 22nd at 1.2885.
From March 19th to May 30th this market moved down and sideways within channel lines. Many traders see this as a flag pattern formation. In my view the formation is certainly not ideal since the internal waves are not quite normal for a flag. Generally, with an ideal flag, the break out would be in the direction of the so-called flag pole, which in this case would be up, but so far the break out above the upper channel line has been less than enthusiastic.
It seems that the best thing to do is identify levels of resistance and support with probable near term targets if on or the other level is exceeded.