Rest's over (2010-03-13 EURUSD analysis)

WOW! It just looked like nothing happnened this week! The heating atmosphere for the enquity markets cooled down a lot and the indices were just going up and down not more than 0.5%! Did you take enough rest during the previous week?

While everything is going so flat, we could not ignore the fact that EUR has already reached the upper line after a long and boring horizontal move. Yesterday EUR was trying to break upwards, with the help of the red triangle as shown below. However, it was just so powerless that it could hardly make it. EUR would have to break two lines, fibonacci and downtrend line, in order to achieve a higher position. But I predict that bad news about Portugal and Spain would follow and EUR would more likely to plunge sharply. The red triangle would push it downwards rather than giving it power to surge.



EUR would be more likely to drop to a new low and becareful of your long positions for EUR.