By: Colin Jessup
The EUR/USD has been making higher lows for the past six trading days, and is up ever so slightly after opening the week at 1.38329. Price has been trying to break above this zone without success and it should be noted that this is the 38.2% retracement level from the October low to the October high. At time of writing, the Euro is trading at 1.38357 but with potential bad news coming from the core of the European Union including Italy and the possible ejection of Berlusconi from his position of power in Greek Parliament, we are in danger of a bearish move soon. This combined with expected good news from both the USA, and its northern cousin Canada today, we will possibly see a big move during the UK/USA sessions. If prices fall, we can expect support to play a role at 1.3777 and 1.3658...if for some reason we continue the bullish rise, we can expect resistance at 1.3870 and 1.3976.
Happy trading!
