Monday, May 18, 2009
Daily Outlook for EURUSD
Attached is the 1H chart of EURUSD. As specified in my article yesterday, EU could not breach the lows of 1.3428 and did make a strong move towards 1.3500. The fact that it closed the day above 1.35 shows that there is lot of strength in this pair.
So, now unless the low of 1.3428 is broken, we should see EU moving up. The fact that it made a dip yesterday and then rose right back up shows that there has been good demand at the lower levels and we should be seeing much more upside in this pair. I believe that this pair should be reaching the previous highs that are close to 1.37 quite soon.
On the upside, EU should face resistance at 1.3580 and then at 1.3611. Break of this resistance should lead to the price moving towards 1.3672 where a huge resistance exists.
On the downside, the supports are at 1.3550 and then at 1.3520 and a strong support at 1.3490. I favor the upside for today. watch out for a retrace towards 1.35 though.
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