EUR/USD Forecast January 25, 2012, Technical Analysis

EUR/USD rose overall during the Tuesday session as the pair initially fell in trading. The market fell to sub-1.30 level, and then turned around as support came back into the fold at the area. However, the area isn’t broken to the upside yet as long as we don’t see a daily close above the 1.31 level. The area is a wide band of interest in the markets, and this range could cause problems. The candle forming a hammer does look supportive and bullish, but we have to be patient as the area is still intact. The breaking of the bottom of this candle would be a massive sell signal while a post-1.31 level signals a buy. Until we get one or the other – we are flat.

EUR/USD Forecast January 25, 2012, Technical Analysis

Written by FX Empire