EUR/USD Trades – EUR crosses support EUR/USD

EUR/USD Current Price: 1.4434 Daily High/Lows:

EURUSD-Aug-23-2011

Tue 23 Aug 1.4501/1.4353
Mon 22 Aug 1.4436/1.4347
Fri 19 Aug 1.4453/1.4259
Thu 18 Aug 1.4453/1.4271

Pivots: S3 1.4206; S2 1.4284; S1 1.4363; P 1.4432; R1 1.4510; R2 1.4579; R3 1.4649

EUR/USD: The EUR/USD price action over the last several months is a sideways consolidation between 1.4000 and 1.4580. The breakout trade hasn’t worked in the EUR/USD, and neither has the trend trade. This is due to tremendous uncertainty on both sides of the Atlantic which is producing both buy and sell flows in the EUR/USD. What is interesting is a comparison of the commodity crosses to the EUR/USD, namely the EUR/CAD and the EUR/AUD. A trader bullish on the EUR/USD would have done better to buy the Euro against the CAD or the AUD, since both registered significant reversals with a 10.3% move in the EUR/AUD and a 6.7% move in the EUR/CAD. ( since August 1st for the AUD and July 21st for the CAD). If the EUR/USD decides to break out of its current comfort zone, we would be looking for higher prices above 1.4580 and lower prices below 1.4000. Note that a break higher might only be a resolution of the triangle pattern, which means a potential retest of the previous high at 1.4941. To trade the EUR/USD profitably, trade within the range on a smaller time frame in order to capture smaller trends. The other option is to look for opportunities in the EUR crosses.

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