Euro Cross Pick 09.15.2011
Following up with the EUR/CAD, the euro-loonie appears to have found intraday resistance ahead of the 200-Day SMA (1.3694), and the exchange rate may consolidate over the remainder of the week as it pares the advance to 1.3713. However, we expect the rebound to gather pace in the days ahead as the relative strength index continues to come off of oversold territory, and I may look to play the range in the week ahead as the DailyFX Speculative Sentiment index falls back to 1.11. Should the SSI turn around over the following week, I will play the pair to the upside as it trades within a broad range, and we may see the pair make another run at the 38.2% Fibonacci retracement from the 2008 high to the 2010 low around 1.4380-1.4400 over the near-term.
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