EUR/USD Market Update
March 18, 2009 by admin · Leave a Comment
“Most recent eur/usd Forecast yields more than 70 pips profit potential” If you followed my last forecast you experienced several events. FX Traders drove around in a few circles before meeting my preferred long position ONCE support at 1.2930 level was tested and the move has now offered more than 90 pips profit. Overnight there were two false breakouts that left the described 1.3017-24 resistance standing, only to pull back towards listed supports at 1.2970 level. Early this morning the preferred support was finally tested at 1.2937 level and the euro has not looked back.
I sense a level of exhaustion building, or better said — a lack of breakout movement. Meanwhile the US Dollar Index has stalled in a very tight range.
Closing long positions now at this 1.3030 level or using what is NOW immediate support at 1.3017 level as a benchmark to kill long positions should it fail to hold. Upward potential remains but I sense a continued consolidation pattern as previously described in my last forecast. Your choice. I prefer to NOW manage any long position to squeeze the last drops out and wait for a new level of consolidated support.
There is a PMTP Alert pending right now at 7 p.m. DST, it is a low to moderate alert for productivity and the duration is limited to less than 2 hours. I have not completed a new study on either the eur/usd or the gbp/usd but the markets have been ranging and typically a new PMTP can signal a range reversal. I might consider looking to sell these resistance levels on low margin. My time was very limited today thus the lack of a new Forecast. Good luck.
Britt Maras – Senior Currency Strategist
