EURUSD managed to close below the Trendline that we have been watching on the daily chart, signalling more sell off to come in near future.
Today, so far we are seeing slight bullishness on Euro dollar which could been a result of Fitch comments about Euro debt worries effecting US banks, lowering demands for US dollars.
Let’s quickly look at EURUSD daily chart:
Price clearly broke and closed below the Trendline yesterday. So far today the bullishness we are seeing could lead to the re-test of Trendline at around 1.3550. This is the key area where bulls and bears will fight it out to take control.
Today we have important economic news items, Building Permits and Unemployment Claims, due out from US later in the day. Avoid opening new trades closer to the news release.
Forex Trading Signal : Stay with trend and look for shorts near the 1.3550 area. If price manages to break above this area then look for longs with caution.
So far this week EURUSD has moved fair bit already, I doubt there is much steam left. We may very well see a sideways movement today and tomorrow.