Pending Short EURUSD at 1.37
The EURUSD managed to break above its narrow descending hourly trend line and now looks poised to test the 1.37 area as Fed Chairman Ben Bernanke is scheduled to testify at the house budget committee. If prices can hold below this level, I would not rule out a selloff in the pair heading into the second half of the week. However, a break above 1.37 warrants concern. All in all, I have an entry position to short the EURUSD at 1.3695, with a tight stop at 1.3725, and a open target.
Meanwhile, my short GBPCHF position that I entered yesterday at 1.5352 was stopped out at 1.552 following the rally in the pair overnight. So long as the pair manages to close below 1.55, downside risks remain.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.