Wednesday, June 12, 2013

EUR/USD Tries to Break Above 1.3300

The pair is trading between two trend lines — the long-term downtrend line and the short-term uptrend line. On 6/6/2013, the day before Non-Farm Payrolls, we had a strong bullish candlestick with a relatively long upper shadow, indicating potential resistance at the session high of 1.3300. Following that on 6/7 (Friday), we had a small bearish candlestick body completely within the prior session’s large candlestick body. It was a potential bearish Harami pattern in an uptrend, but that warning signal was not confirmed in the subsequent trading sessions.


On 6/10 (Monday), we had a bullish candlestick body engulfing the small bearish candlestick body of 6/7. On 6/11 we had another bullish candlestick, this one closing at 1.3311 — 11 pips above the key resistance level of 1.3300, which was the high on 12/19/2012. If price has a stronger close above 1.3320/3350 today, more upside movement may be expected. The RSI on the daily chart is approaching 70 and the MACD is bullish.

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