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EURUSD:Holding Above Long Term Support

Tue, Apr 14 2009, 09:02 GMT
by Mohammed Isah

FXTechstrategy

EURUSD:Holding Above Long Term Support - Watch Out For Upside Risks -With the pair’s longer term declines initiated in Nov’07 at 2.1161 now halted and having bottomed in Jan’09 (at the 1.3504 level) and worked its way higher for the last two to three months, continued hold on to those gains by GBP and maintaining above the mentioned longer term support zone will risk further higher prices.

With the pair’s longer term declines initiated in Nov’07 at 2.1161 now halted and having bottomed in Jan’09 (at the 1.3504 level) and worked its way higher for the last two to three months, continued hold on to those gains by GBP and maintaining above the mentioned longer term support zone will risk further higher prices. The present upside build up is coming on the back of a recovery triggered at the 1.3504 level, its Jan 23’09 high followed with a failed retest of that level (1.3655) on Mar 11’09.With that recovery, GBP is now standing on and trading above four strong support levels at the 1.4063 level(Feb’93 low),the 1.3682 level(Jun’01 low),the 1.3504 level(Jan’09 low) and the 1.3655 level(Mar’09 low) which are clearly seen on the weekly and monthly charts. The significance of this band of support is that the pair must decisively clear it to reverse its present short term uptrend and start the resumption of its longer term downtrend which is now on hold. Until that occurs, GBP is currently biased to the upside for the continuation of its recovery started at the 1.3504 level.

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Published on  Tue, Apr 14 2009, 09:03 GMT