Tuesday, May 12, 2009

Daily Outlook for EURUSD


Attached is the 1H chart of EURUSD. To be honest, this strength of Euro surprises me a bit. I had expected a top around 1.37 and then i expected a big fall once some distribution had taken place at the top. But the fall does not seem to have come at all. Atleast not yet. On the other hand, EU is showing great strength. Yesterday, it broke through one of its major resistances at 1.3670 and then has retraced a bit.

The very important thing to notice here is the fact that all retracements have been on low volume and all up moves have been on higher volume which shows the underlying strength of this pair.

For today, the support will be at yesterdays low which is around 1.36. There should be strong resistance at around 1.3750 and then the round number of 1.38 but considering the underlying strength, i would expect EU to go up more and all these resistances to be broken, if not today, then very soon.

I do not expect EU to go down below yesterdays low of 1.36. Expect more upside today with support as 1.36..

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