EUR/USD: Making New Highs, But Can They Be Held?
Admirals | Oct 02, 2013 07:06AM ET
Yesterday was a good day for the EUR/USD, and buyers managed to set new long-term highs, just below 1.3590. Although making new highs is something positive, not being able to keep those high levels is not. On a daily chart, we can see a dangerous bearish looking candle (shooting star) which promotes sellers. Sell signal cannot be triggered yet as the price is still above the 1.35 support (green area) and above the lower red line connecting recent higher lows, which are preventing the price from drawing the double top formation. This kind of setup (double top, with the second top being a shooting star) can be very dangerous, and can cause a downswing to at least 1.34.
Today, traders will find out the minimum bid rate in the Eurozone as well as ADP report, so we cannot complain about the lack of data shown. What is more is that we will get an important piece of information from the Italian government, which can change the sentiment on the EUR/USD anytime.
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