(MENAFN- DailyFX) Check out the intermediate-term fundamental and technical outlook in the Q1 EURO Forecast.
EUR/USD volatility set to expand as breakout unfolds
The other day I discussed the pent-up pressure in long-term Euro volatility and how coupled with short-term volatility conditions it creates an explosive situation. Running with yesterday's breakout into the mid-11500s we should see EUR/USD continue to make good on higher prices in the near-term and maybe longer.
Looking to resistance levels, the 200-day is rolling down to around 11636 at this time, but with it not having any confluence with major price levels it's not viewed as ultra-significant. The next major area of price resistance doesn't arrive until the 11800/50 area, leaving a solid 250/300 points from current levels.
This may indeed turn to be a false breakout, but we'll take what is in front of us and run with a bullish trading bias as long as we don't see a breakdown back inside the range. If price trades back to 11450, then more choppiness or a full reversal and gathering of momentum may take shape to the downside as the market is caught leaning the wrong way. An outcome we'll discuss later should it become relevant.
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EUR/USD Daily Chart (Bullish above 11450/resistance ~11800) ***Updates will be provided on these ideas and others in the trading/technical outlook webinars held on Tuesday and Friday . If you are looking for ideas and feedback on how to improve your overall approach to trading, join me on Thursday's for the Becoming a Better Trader webinar series.
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Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment , quarterly trading forecasts , analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex .
---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
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