EUR/USD Technical Analysis October 12, 2011

The EUR/USD pair rose again on the Tuesday session as traders really didn’t have much to focus on during the session. The pair wants to rise, mainly as an oversold bounce at this point, but the consensus continues to be mixed at best.

The pair looks like it has found serious resistance at the 1.37 level, and until that area is broken to the upside, most trades will be difficult at this point. The EU has a lot of issues ahead of it, so owning the Euro will be a short-term prospect at best. The breaking of the level will undoubtedly have the pair looking for the 1.40 level, but any bad news could suddenly reverse the direction. Because of this, we are more interested in looking for rallies to sell, and weaker candle formations to short from at this point.