EUR/USD Technical Analysis September 14, 2011

The EUR/USD got a pop on Tuesday as traders reacted to every piece of news or rumor coming out of the Euro Zone. The reports of a joint statement coming out of the French and German governments gave a rise to the currency, and then the denial of anything immanent made it fall again. The pair then rose on the simple fact that nothing devastating came out of the EU, but the Italians had to pay a post-EU high on their 5 year bonds during the session as well. Needless to say, the pair is a mess right now, but it should be noted that it fell much quicker than it rallies. Because of this, we feel the market has spoken, and your job is to simply find good setups to sell from at this point. A bounce is possible, but if it doesn’t come – that would be disastrous for the common currency. The pair is better left alone until we get a nice rally to fade or a daily close below 1.35 to short.

Written by FX Empire