EUR/USD: Pulling-Back To Formidable Support Zone, Rotation Likely
Forex4you | Apr 27, 2015 06:03AM ET
The EUR/USD has been rising within a sideways consolidation range. It has broken above the monthly pivot and the 50-day MA now, forming a temporary high of 1.0899.
The pair has now pulled back from that high to just above the monthly pivot and 50-day (and weekly pivot at 1.0808 as well) in the 1.0805-20 range. It will probably use this zone as a springboard for a resumption of the very short-term up-trend back up to the range highs around 1.1035.
Traders have two possibilities – a high risk long trade taken at the current market level with a target at 1.1000, with the advantage of a tight stop just under the monthly pivot and 50-day; or to wait for confirmation from a move above the 1.0899 highs and then trade long up to the 1.1000, psychological level and round-number resistance.
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