Euro Cross Pick 09.05.2011
The EUR/CAD bounced back from a low of 1.3931 to hold within Friday’s range, but we may have an opportunity to play the range-bound price action in the exchange rate once currency traders return from the holiday weekend. I am still looking to play the near-term reversal from 1.4311 as it carves out a top in August, and I am looking for a close below the 100-Day SMA at 1.3919 to fade the rebound from 1.3407. At the same time, the EUR/GBP looks to have found intraday support ahead of the 38.2% Fibonacci retracement from the 2008 high to the 2010 low around 0.8730-50, but the pair may extend the pullback from 0.8884, which could expose the 200-Day SMA at 0.8686.
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