The EUR USD is trading in a tight range as traders await the results of the Spanish auction due to begin in a little more than 2 hours. The 60-minute chart offers an excellent perspective of what traders are facing at this time.
The EUR USD is trading in a tight range as traders await theresults of the Spanish auction due to begin in a little more than 2 hours. The60-minute chart offers an excellent perspective of what traders are facing atthis time.
Based on the main range of 1.3212 to 1.2994, a retracementzone has been created at 1.3129 to 1.3103. The market has been trading insideof this range for several hours on very low volume. The Euro is also tradinginside of a major triangle chart pattern. The upside resistance is currentlynear 1.3140 and the up sloping support line is near 1.3080.
When the auction results are released at 9:30 London Time,the resistance will be at exactly 1.3143. This price is the upside breakoutlevel. The up trending support line will come in at 1.3080. This price is thedownside breakout level.
Traders have to remember that this is going to be a momentumtrade so after the Euro makes its move, don’t turn it into a trend trade if themarket begins to pullback into the breakout zone. Get out after the momentum slowsthen reload if support or resistance is re-established. Keep in mind that theresults of the Spanish bond auction will most likely set the tone for the day.
For more information, please visit: http://patternpricetime.com.