The Eur/Usd is the worlds most traded pair and there is currently a great deal of speculation about the current condition and how will the Dollar perform vs. the Euro this year. Last year the pair had a wide range but in the end didn’t really go anywhere. The Dollar began the year at 1.3938 and ended at 1.4331 the pair was down early and came back strong during the year only to lose most of the gains made during the year.
What is going to happen for the pair this year? Only time will tell but right now the Dollar has momentum and you cannot discount current momentum until things begin to change. There is a current article by Money and Markets that is thinking the Euro is going down.
Fundamental Data plays a big part in the movement in currency prices and The Geek Knows has 3 useful articles about the Dollar, Gold, and Oil read those to learn about how the price could be impacted in this coming year.
On the Technical side of things we are currently in a range that the pair has been trading in since December 16, 2009 so right now it is possible to use the range as support and resistance in your trading. Simply buy or sell on bounces of the range. It is also possible to buy and sell on the breakouts of the range as well.
4hr chart *click on the chart to get a free trial of the premium trading service.
You can see from the chart that the current range is between 1.4456 an 1.4216 On a break below the 1.4200 area I would look for a target of 1.4000.
For more information about the Eur/Usd read the forecast for 2010 at Forex Crunch.
Winner’s Edge Trading, as seen on: