EUR/USD Forecast October 31, 2012, Technical Analysis

The EUR/USD pair fell during the initial part of the Tuesday session, but bounced yet again in order to form a hammer. Looking at this chart, it becomes obvious that we are forming higher lows along the way and there is a minor trend line that the markets are following. Because of this, we think that there is a biased to the upside, but the truth of the matter is we are in a huge mass of noise in this market. Is because of this that although we have a slightly bullish bias, this will be one of our least favorite markets to trade right now.

There should be quite a bit of resistance and choppiness all the way from here to the 1.35 area. Below, we see the 1.28 level as a massive support level. In fact, the easiest trade to take on this chart would be a break below the 1.28 level in order to start shorting this pair massively. However, it does not look very likely that we will get that signaled anytime soon.\

 

EUR/USD Forecast October 31, 2012, Technical Analysis

Written by FX Empire