EUR/USD Technical Analysis October 28, 2011

The EUR/USD pair shot up during the Thursday session as the EU finally came out with a bailout plan, and so far it looks like the markets like it. The move was quick and strong, and it appears the trend has change, at least for the short-term. The pair looks to have a floor in it at this point in time – somewhere near the 1.39 level. The pair should continue to provide a good “buy on the dips” scenario for a while at least. The final details for the plan aren’t out yet, so there are going to be numerous headline risks in this pair. Tight stops are recommended, but a positive tone is certainly surrounding the pair at the moment. We cannot sell until we close below 1.40 on the daily chart again.