EUR/USD Technical Analysis October 31, 2011

The EUR/USD pair had a negative day on Friday, after clocking in an outstandingly bullish day on Thursday. The rest isn’t surprising after that massive move, but the market has stopped at a former gap, which has to have some technicians wondering. Personally, we think the rally is somewhat overdone as there are some major details to be worked out in the EU and its bailout. However, the 1.40 level should be a bit of a floor as this market looks to pullback and pick up some more buyers that perhaps missed the move. If we can break back below the 1.39 level – we would be massively bearish at this point.

Written by FX Empire