Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/USD Daily Outlook April 23, 2012

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

By: Christopher Lewis

The EUR/USD pair had a bullish session on Friday as the “risk on” attitude came back into the markets for the day. The Spanish managed to sell their bonds this past Thursday, although they had to sell them at slightly higher rates. This seems to have been just enough to get the bulls active for the week, and especially this Friday.

The pair has been stubborn to say the least. After all, there are plenty of reasons to run from the European Union and its financial troubles. However, there are rumors in the markets of several emerging market central banks being involved in propping this pair up as they have diversified away from the US dollar over the last few years. Some of the rumors include several Asian central banks and the Brazilians as well.

None the less, there is someone picking this pair up at the 1.30 level. The moves have been almost clock like in their precision and reliability. The level is obviously one of the most important levels in the Forex markets at the moment. If it gets breeched by the sellers, the Euro could be in serious trouble.

Temporary Breakout


The action on Friday was actually a slight breakout of recent consolidation. The 1.32 level seems to be the point at which the bulls will have taken control for the most immediate areas. However, with the 200 day exponential moving average floating just above looks like it will come into play relatively soon, and should keep this pair lower overall. Because of this, I am still bearish of this pair, even with the sudden move higher.

EUR/USD Daily 42312

The lower high looks very much like a possible triangle trying to form, and if it does it would suggest that a breakdown below the 1.30 level sends this pair down to the 1.25 level. None the less, the pair looks clear below the 1.30 level down to 1.26 at the least. I am looking to sell the pair if we see a weak candle near the mentioned trend line for the triangle. In fact, unless I see a close on the daily chart above 1.35, I am only selling.

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews