EUR/USD Technical Analysis for the Week of October 24, 2011

EUR/USD rose again this past week as traders continue to anticipate the EU coming to some kind of solution in the debt crisis. The pair looks strong at this point, but the 1.40 level should present serious resistance in this pair coming up. The meetings over the weekend could be another catalyst for a big move, but until then it is hard to tell where we go. The path of least resistance is probably down, and a breaking of the bottom of the candle for the week would have it being a “hanging man”, which is very bearish. The breaking of the 1.40 mark must be accompanied by a daily close, and then we would consider buying. Until then, we have to sit still.