EUR/USD Technical Analysis October 27, 2011

The EUR/USD pair had a wild day with the EU summit coming to a close, there was back and forth trading, and at the New York close, there were only rumors to trade off of. The hints that China might participate turned the Euro’s fortunes around, and the EUR/USD bounced as a result. The ending candle is a massive doji, which shows exactly how confused this market is. The lack of information is making it almost impossible to trade, so we will simply have to wait to see if the 1.40 level gets broken to the upside in order to buy. We need to see a daily close above that level in order to buy this pair. To sell, we will need to see a break of the lows of the Wednesday session. Until we get clarity, the market continues to trade off of rumors, and little else.