Tuesday, July 9, 2013

EUR/USD Testing the Major Uptrend Line


EUR/USD Daily Chart (as of 7/9/2013): The EUR/USD paused on 7/5 with a closing price of 1.2830, right at a major uptrend line connecting the 11/13/2012 low, the 3/27/2013 low, and the 5/17/2013 low (as shown on the daily chart), which has been in place for about eight months. Yesterday we had a bullish candle close above 1.2850. Price is currently testing the uptrend support line with a penetration below 1.2800.

Watch today’s closing price closely. If price closes above the support line, or above 1.2800/30, more testing or upside correction may be expected, with an initial resistance at 1.2900/20, and then potentially 1.3000. If price effectively breaks down the support line, it may head down straight to 1.2750 (the 3/27/2013 low) and then 1.2650 (the 11/13/2012 low), followed by the major psychological level at 1.2500. The daily MACD is bearish, and the RSI is falling and approaching 30.


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