Chart Analysis: EURUSD

Monday, December 15, 2008

I revisit the EURUSD chart to point out that a large trendline has been broken. The next major resistance if this rally is able to keep up a head of steam comes in the 1.3800-1.3900 area. The 100-day moving average comes in just below 1.3800 at present. Higher up, a big flatline and 0.618 Fibo resistance level comes in closer to 1.3900. First support is the 1.3400 area. While the 1.3463-73 resistance caps I feel the stronger risk is for a correction lower today. There is first support around the 1.3390-10 area and it is break here that should set the scene for a choppy decline. Breach would extend the pullback lower and then we should observe minor supports at 1.3350 and 1.3300-10 before Friday's 1.3249 low. If the 1.3463-73 peaks I feel the extent of the decline over today and tomorrow should be at 1.3196 minimum and at most 1.3151.


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