EUR/USD Technical Analysis October 6, 2011

EUR/USD continued to bounce slightly on Wednesday as traders are willing to take a bit more risk at this point. The behind the scenes situation in the EU suggests that there is some kind of coordinated action to recapitalize the banks in that region, and this will help spirits in this market. However, the recent bounce is quite small when looking at the overall downtrend, and as such – we see this as an opportunity to sell from higher levels. We like selling rallies, and are waiting to see a resistive candle from which to short.

Written by FX Empire