Crunch Time For EURUSD – 5/26/2010

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EURUSD Daily – As we look at the daily chart on the EURUSD we see today is the 5th Daily bar testing the 1.2150 level on the currency pair.  This could be setting up for a volatile move in either direction.  Why?  Well first technically this level is a line in the sand for the last 8 trading days.  A break here would open it up to at least 1.2000.  If we break 1.2150 you could get short with a stop of the 30 min Tenkan Sen or Kijun Sen plus a buffer.  If we hold here then we could get long on a break of the 30 min Kijun Sun with a stop using the 30 min Tenkan Sen or Kijun Sun depending on your risk.  In addition with the US holiday coming up trading volumes should be lighter and it wouldn’t take a lot to move a currency pair.  It would be a golden opportunity for a central bank not on a holiday to intervene.
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