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22 Apr 2013
Forex: EUR/USD drifting sideways as range bound behavior continues
FXstreet.com (Barcelona) - The EUR is flat during Asia trade as recent sideways action on the daily chart continues to limit any type of major trend from developing. The main economic data on tap will be Existing Home Sales due out during the NY Session at 14:00.
“The short term range is now confirmed, with 1.3121 being the upside and the big figure at 1.3000 as the downside. This could be forming a larger HS (head and shoulders pattern) on the daily, which would suggest breakdown.” He went on to add, “The false break also suggests, so any corrective pullbacks up towards the range high should be considered a sell signal targeting the range low, and a potential break further which would target 1.2951 and perhaps 1.2850, noted Chris Capre at 2nd skies.”
The FXStreet.com Trend Index remains slightly bullish on the daily, while the OB/OS index remains Neutral. The RSI (14) remains in neutral set up, sitting just below key resistance at 60. Market participants will continue to monitor the upper (1.3180) and lower (1.3020) ends of the trading range as key pivots in determining the next major move.
“The short term range is now confirmed, with 1.3121 being the upside and the big figure at 1.3000 as the downside. This could be forming a larger HS (head and shoulders pattern) on the daily, which would suggest breakdown.” He went on to add, “The false break also suggests, so any corrective pullbacks up towards the range high should be considered a sell signal targeting the range low, and a potential break further which would target 1.2951 and perhaps 1.2850, noted Chris Capre at 2nd skies.”
The FXStreet.com Trend Index remains slightly bullish on the daily, while the OB/OS index remains Neutral. The RSI (14) remains in neutral set up, sitting just below key resistance at 60. Market participants will continue to monitor the upper (1.3180) and lower (1.3020) ends of the trading range as key pivots in determining the next major move.