EUR/USD Forecast August 31, 2012, Technical Analysis

The EUR/USD pair ended up lower at the end of the Thursday session sitting just above the 1.25 level again, as it serves as support. With the Federal Reserve Chairman giving a speech later today in Wyoming, it is more than likely that we will see this pair remain fairly flat until the speech is over with.

If there are sense of quantitative easing in his speech, there’s a good chance of this pair continues higher. However, you we would warn you that the resistance runs all the way to the 1.27 level. As for the downside, if he does not mention quantitative easing at all, we could see a serious move if we can get below the 1.24 level. The trend is down, and this is the trade we actually prefer. However, you simply cannot wish for the trade you want to see, but rather react to what the market offers you.

 

EUR/USD Forecast August 31, 2012, Technical Analysis

Written by FX Empire