EUR/USD Technical Analysis October 26, 2011

The EUR/USD pair found itself in a range during the Tuesday session, but ultimately ended up being slightly negative. The upcoming summit today in the EU should continue to drive the pair and its future direction. The markets could be disappointed, and if it is – this pair falls rapidly. The 1.39 – 1.40 areas is proving to be resistive, and the trend is still down. With the EU Finance Ministers cancelling the meeting for Wednesday, it leaves only the member states to try and work things out. This leans more towards bearishness in our opinion. If we can break above the 1.40 area on a daily close, we would be forced to buy this pair. Otherwise, it should be sold if we see a sell off.