EUR/USD hits upper trendline
In a perfect channel play, the currency pair hit the upper trendline and has now retreated a little for a rest.
The beauty of technical analysis still amazes me these days when the market respects the line accurately.
With news contents such as ” Stocks rose worldwide for a fourth day “, the world can be said to be in a positive rally.
From a technical point of view, the EUR/USD will face challenges breaking through this trendline.
If it fails, we may expect immediate support at major line 1.4400 followed by one of the previous high around 1.4360.
If bullish momentum continues, we should expect resistance at major line 1.4600, followed by the high of 18 DEC 08, at 1.4719.
Looking at our usual market clues, the S & P 500 has been enjoying a rally and looks set to challenge the previous high again.
It is my opinion that the market consist of mixed sentiments now. This is played out across many markets, resulting in ranging conditions
One side of folks will be celebrating a economic recovery while the other warns of a correction.
Should the S & P 500 moves beyond 1050, my attention will be there.
Oil is currently around $68 and looks set to test the support of $70.
Gold has recently attracted my attention. It has reached the 1000 mark.
This may be the reason for the general US dollar weakness.
Looking at the 3 months US dollar index, bearish momentum is strong.
If such conditions continues throughout the week, we may well break the significant upper trendline and open up new price regions.
Whether is this the real recovery or just a rally long due for a correction, trade with proper money management and learn from your experiences.
Trade safe.
