Sunday, October 31, 2010

EUR/USD talk

The EUR/USD pair has been obviously bullish and despite the latest moves, which offered hope for a reversal, the larger picture still remains with EUR/USD targeting the 1.4500 position.
Still, a daily close above the 1.4160 (the highest high set o October 15 ) will be necessary to confirm the bullish trend to 1.4500 (and higher).

This Wednesday we have the Federal Open Market Committee Rate Decision which will greatly influence the pair's movement. Although this event is expected to trigger the pair's rally(and this thought is encouraged by the fact that the European calendar doesn't have major events this month ), it's better to act with precaution than regret later, so until then I advise only intra-day trading for EUR/USD. Until Wednesday don't open new positions that cannot be closed the same day.

Until Wednesday I expect to see some intra-day bearish signals for EUR/USD, although, because of the big event, there will be much indecision these days and opening new positions will be quite risky.