Euro Looks For Direction Following Stress Tests
Getting short the EUR/USD at the beginning of the week proved profitable as the pair was weighed on concerns over the potential results of the bank stress tests. The pair failed to reach my target of 1.2600 but nonetheless I was able to book solid profits before a turn in sentiment. The pair has recouped most of its losses on the back of improving optimism for the region and global economy. The stress tests results failed to influence price action as markets continue to debate its merits. Staunch resistance remains at 1.3011-61.8% Fibo of 1.3689-1.1911, and I would require a break above the barrier before taking a long position. Back below 1.2700 would have me consider a short position with a break below the 20-Day SMA at 1.2696 a clear bearish signal.
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