EUR/USD: The currency rallied profusely over 1200 points from a low in August until a recent high. However, we have to keep in mind that the Euro is drastically overbought at this current juncture of time. The Euro-zone has a tremendous amount of fundamental problems which are not yet dealt with. The latest example of the following example of troubles comes from recent bailout of an Irish Bank in an amount of $50 Billion. The picture is not rosy in the Euro-zone, in exception for in Germany. German’s unemployment rate has recently fallen to an 18-year low. In the recent unemployment figures, the jobless rate has risen to 10.1%, a quite negative notation.
Looking at the technical aspects of the Euro, our preference: short positions below 1.373 with targets at 1.3665 & 1.362. The alternative scenario: above 1.373 look for further upside with 1.3795 & 1.383 as targets. As long as the resistance at 1.373 is not surpassed, the risk of the break below 1.3665 remains high. Pivot: 1.3730, Supports: 1.3685, 1.3665, 1.3620 & 1.3550; Resistances: 1.3795 & 1.3830.
Happy trading and all the best!