EUR/USD (daily chart as of September 25, 2013) broke out
above the long-term downtrend line (bold red line on the chart) with a very strong
bullish candlestick on September 18. However, it is far too early to tell at
this point if the currency pair has changed from a lengthy trading range that
started from April 2008 to an uptrend resumption. Long-term trend line breakout
requires the confirmation from the long-term time frame.
It appears that price is currently consolidating the recent
surge with a possible flag continuation pattern, and testing the key
resistance/support level at around 1.3450. If it can hold 1.3450, price could
retest 1.3570, followed by a potential test of 1.3710, or the upper edge of the
uptrend channel (bold blue parallel lines). If price fails to hold 1.3450, the
support levels below are 1.3415 (June 18 high), and 1.3325 (September 17 low)
or the long-term downtrend line.
No comments:
Post a Comment