With pressure building in the form of an ascending wedge just beneath strong resistance the euro is on the cusp of a breakout. There is a good amount of resistance in the area around 11720/50 which needs to be cleared through first before momentum has a chance at picking up.
Choppy trading conditions in EUR/USD have made life difficult for those trying to play for a sustained move. As we’ve been discussing in recent webinars, taking only quick-hitter range-trades or staying away altogether has been a prudent approach. (for upcoming webinars, check out the calendar).
A clear on through, though, given the extent of the recent choppiness could lead to quick trade higher into the 11900/2000 area.
Risk/reward on a swing-trade might not be the best, but for shorter-term tactical maneuvers a breakout could pave a clear path of least resistance to trade along. – Neal Bhai Reports
