Europeans Make A Move-One Lags Behind
Euro
The euro is struggling to push above the 1.3700/50 area, the same place that formed a swing point high over the last three weeks of trading. The euro battles a resistance trend-line that has contained the market since Feb 09. A break above the 1.3700 area will certainly denote a bullish outlook, but will then face a major hurdle sitting at the 1.3850 resistance area. The Eur calendar is clear of any red-flag reports in the near-term, and therefore the tests of upside resistance may need to be banked in stages. Price action is likely to remain volatile.
Cable
Price action has set a base on cable at the 1.4900 area, which in time should allow it to retrace the strong selling seen over the last few weeks. On the daily chart, the pound is trading in a deeply oversold state, and favors a long bounce. The current trend read is short, and the only pair with a 4 Hour reads that is not short-Usd. If price action on the pound breaks above the 1.5450 area, its outlook changes to long.
Swissy
The Swiss National Bank interest rate decision did not bring anything new in regard to the Usd/Chf or Eur/Chf exchange rates, nor did it spark any volatility that could hold, which is very unusual. Until something happens to change the dynamics of the overall current market, the Usd/Chf is expected to mirror every move made by the Eur/Usd.
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