EUR/USD Forecast May 2, 2012, Technical Analysis

The EUR/USD pair had another back and forth session on Tuesday as the market simply cannot decide which way it wants to go. The downtrend line from the February highs continues to hold the bulls back, and as a result this market has been very, very tight.

The 200 day exponential moving average is still above as well, and the combination of the two could continue to push this pair lower every time it tries to rally.

 

The economic worries in Europe continue, and as a result we aren’t very interested in buying Euros at the moment. The pair looks as if it is stalling, but with the Non-Farm Payroll numbers coming out on Friday, this pair could be very quiet until those are released. We like selling a break below the Tuesday lows, but would hold off on buying until we clear the 1.35 resistance area above.

EUR/USD Forecast May 2, 2012, Technical Analysis

Written by FX Empire