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Doing A Lap In The EURUSD

|Includes: CurrencyShares Euro Trust ETF (FXE)

The EURUSD (NYSEARCA:FXE) has done a full lap down then up with technical levels helping to define the moves

  • The 100 hour MA was test along with the 50% at 1.2642. The low reached 1.26364.
  • The correction higher off the support did not hold the 1.2662/67. Sellers covered/Buyers entered,
  • The price now moves toward the 1.2744/45 resistance. This is the high for the week and the 38.2% of the move down from the 2012 high.

Look for stops on a move above the 1.2745 area. Markets will remain volatile through the Fed Chairman's press conference at 2:15 PM ET. Where can the price correction go? 1.2701 is 38.2% of the move from low to high and also the 100 bar MA on the 5 minute. 1.26887 is the 50% of that move and the 200 bar MA.

If the markets are too volatile for your liking, you have an option to not trade until risk is more tolerable.

http://www.forexlive.com/blog/2012/06/20/doing-a-lap-in-the-eurusd/