FX Market Forecast for EUR/USD by Britt Maras
February 26, 2009 by admin · Leave a Comment
EUR/USD is mired in an old and tiresome range; the old ‘floor’ was 1.2779 levels so it is treading water below it. Recent uptrend support is right here to 1.2727 and at the 2700 level. 1.2707 is the apex of what I measure as an opposing angle convergence of a down slope trend line and an upslope trend line. A rapid break of the 2707 Apex will target 1.2649 and 1.2556 are bear targets. Apex resistance of 1.2815 and 1.2856 is for the bulls.
We are entrenched within what I see as massive congestion and noise. But – whenever we see this, something is about to change. If you recall my last forecast when it was entrenched in such congestion, you may recall that I am not a breakout trader as most breakouts from ranging markets are not mature breakouts and are typically short lived.
That said – I will be watching the US Dollar Index for a confirmation for my next trade, the index is in an uptrend that has stalled so I will need more price action from the index and so will the eru/usd before any trade with effective risk reward profile can be issued.
Meanwhile I will stay out of the market. I hope to deliver a tidier Forecast later if I see a proper trade develop. I think we are meandering in no-mans land. Talk soon.
Britt Maras, Currency Strategist
