When looking at this chart, it seems very similar to the USD/CAD in the sense that it seems to be “stuck”. However, this pair is still in the triangle that we have been talking about for a few weeks now, and parity (1.0000) is still very supportive.
Because of this, the bias is still to the upside, and a break out above 1.02 measures as a run to the 1.09 handle based upon the height of the triangle. A break below the triangle would have parity to contend with and then 0.98 as well. If we can manage to get below 0.98 – then we have to consider the trend changing. However, all likelihood points to an upward move at this point.
More March 15, 2011 Analysis:
