EUR/USD – Bullish Hints Inside the Range?

Posted on March 10, 2010 by Yohay
Filed Under Forex Opinions | 5 Comments

EUR/USD is trading in a range for over a month. While the long term trend is bearish, some bullish hints can be found within this range.

Since February 4th, EUR/USD plunged into a range between 1.3423 to 1.3850. At the beginning the trend in the hourly charts was negative. On February 19th, the bottom line of 1.3423 was approached for the first time. And later, the peak was lower than previous peaks – 1.3690 on February 23rd.

EUR USD Bullish hints

EUR/USD hourly trends. Click to enlarge

This narrow range of 1.3423 to 1.3690 continued until March 4th. And then, EUR/USD approached 1.3750 and fell only to 1.3530, far enough from the bottom.

In the chart above, you can see the trend changing from bearish to bullish. But this is a narrow time frame. Since the peak of 1.5144 in December, the long term trend of EUR/USD is down.

Fundamentals support the long term downtrend: Europe’s recovery is slower than expected, the unemployment rate is high and the debt problems from all over the continent continue to weigh on the Euro.

The levels to watch continue to be 1.3423 and 1.3850. A break of these levels will indicate the long term direction. In the meantime, range trading, which characterizes this pair, will be further seen.

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Comments

5 Responses to “EUR/USD – Bullish Hints Inside the Range?”

  1. Forex Daily Outlook – March 11th 2010 | Forex Crunch on March 11th, 2010 12:01 am

    [...] As seen in the Non-Farm Payrolls and also beforehand, the commodity currencies continue to show strength while the Euro and the Pound are weak. This will probably continue, although the Euro seems to be stabilizing. [...]

  2. obinwelego on March 11th, 2010 11:51 am

    What is the possibility Trend of GBPUSD from today onwards 11th March 2010 either Bullish or bearish.I want to no what the market will look like from now.
    obinwelego1@yahoo.com

  3. Forex: Australian Jobs, Switzerland Rate Decision, and Important Figures in the U.S. on March 11th, 2010 4:29 pm

    [...] As seen in the Non-Farm Payrolls and also beforehand, the commodity currencies continue to show strength while the Euro and the Pound are weak. This will probably continue, although the Euro seems to be stabilizing. [...]

  4. EUR/USD Outlook – March 15-19 | Forex Crunch on March 13th, 2010 8:39 pm

    [...] the middle of the week, I wrote about bullish signs for the Euro within the range. Indeed, EUR/USD closed higher, but didn’t break any major levels. Will it stay in the range? [...]

  5. EUR/USD – Edging Up Before the Plunge? | Forex Crunch on March 16th, 2010 1:40 pm

    [...] going through a downtrend channel, it changed direction and EUR/USD showed bullish signs, but still within the range.. EUR/USD began trading in a clear channel, marked on the graph. There [...]

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