EUR/USD Forecast April 23, 2012, Technical Analysis

The EUR/USD pair had a bullish day on Friday, breaking higher on the session as the hammers from the previous two sessions triggered a bullish run. The pair looks as if it will continue higher for the moment, but the area above looks very resistive. The 200 day EMA is starting to drift lower, and the 1.3350 area above looks like a good candidate for resistive candles. Based upon this, we think that the pair will rise to that area roughly, and then show signs of weakness. On that move, we are shorting the Euro as the long-term prospects for this pair has far too many asterisks for us to be comfortable being long.

Written by FX Empire