Euro Cross Pick 03.29.2011
The EUR/USD looks poised for a correction as the bearish divergence in the relative strength index continues to pan out, and I will look to sell the pair once it breaks out of the upward trend from earlier this year. With the EU scheduled to release the results of the commercial stress test on Thursday, the euro is likely to face additional headwinds going into the middle of the week, and the EUR/USD could be carving out a top in March as the near-term rally fails to produce a test of the November high (1.4281). In turn, I will sell the EUR/USD on a close below 1.4000 and will look for a test of the 50-Day SMA at 1.3797, with the stop at 1.4052, the 3/17 high.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.