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EUR/USD - Watch Carefully Today

By DailyForex.com

EUR/USD Analysis, August 10, 2011

EURUSD: 1.4347

Very Short-Term Trend: sideways consolidation

Outlook: Like most currency pairs, this one remains range-bound and difficult to trade. The difficulty comes from the fact that this sideways consolidation (which is apparent) has no strictly defined support and resistance levels. There are no levels that if taken out, we can expect to see a huge move in the respective direction with a high confidence. Since the market is near the upper limit of its range and is getting overbought, a short position may be possible at some point later today. Probably the best to way to enter short is if EUR makes a new intra-day high and there is a divergence between the price and hourly oscillators. Look for this action around the opening of U.S. stock market trading. If you find it, you may consider the short side.

Strategy: Stand aside. 

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