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Tight Euro Range Indicates Impending Volatility

Discussion in 'Forex Daily News & Outlook' started by forextrends24, Feb 12, 2010.

  1. forextrends24

    forextrends24 New Member

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    Today’s sample of Forex Analysis from ForexHound.com

    The Euro made a successful test of last week’s low at 1.3584 and finished close to the middle of this week’s range. Early in the session, the EUR USD broke sharply but buyers came in to defend the low. Volatility is expected to continue to be high as traders are reacting to news or the lack of news regarding the possible announcement by the European Union of a plan to support the Greek economy.

    The daily chart pattern suggests this market is being wound tightly. The longer it remains in a tight range the stronger the breakout move. A rally through this week’s high at 1.3838 should put this market on path to retrace to at least 1.4079 over the near-term.

    Timing the swings of the market has been difficult this week as news has been sporadic. One thing that has been made clear is an agreement between the EU and Greece has been reached. The main issue driving the Dollar and the Euro today is the details of the pact. Some bullish Euro traders apparently were led to believe that a bailout out would take place, but that does not appear to be the case.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
     
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