Monday, September 9, 2013

Technical and fundamental outlook on EURUSD

As my graph showed you, EURUSD found resistance at 13185 Fib level, we failed to break this level for several times now. The more it failed, the more likely we will see some significant pull back. Support coming at 13150 and 13110

One thing I want to mention is the article in the Financial Times this morning, the article said that US investors have pumped more money into European equities than at any time since 1977 in a big vote of confidence for the region and its ability to recover from the debt crisis

Why this matter? Well, when the fund flow into Eurozone, it will bid up EURUSD. We certainly saw some sentiment shift over the past few weeks, business confidence improved, economy out of recession. It all gave traders and investors confidence on the $EURUSD outlook. So I don't think we can be too bearish on EURUSD, I will look for pullback as long entry point, I probably will set up a long at 13150, stop 13110, target 13250

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