EURUSD
After a false breakout of 1.5640, the Euro recovered and climbed past the 1.5700 mark, testing 1.5800 during today's Asian session. Strong support is now formed at 1.5800 due to a triangle formation seen in the chart below. An upward channel is also formed by the previous lows (T2 line) and the recent highs (T3 line). A potential break of the key resistance at 1.5800 is required to signal a full resume of the uptrend and a break out of the range. On such a break, the channel's resistance which now comes around 1.5990 will become the next objective. Since the 1.6 psychological barrier is pretty close to the channel's resistance of 1.5990, upside may be limited for a while as a break higher beyond 1.6 won't be an easy task. So, in shorter words: if 1.5800 breaks - 1.5905 record high will be the next key resistance then 1.5990 and 1.6 higher. On the downside, solid support stands now in the 1.5550-1.5580 zone. Until then, the Euro would also face interim support at 1.5700 and 1.5640. The previous test of 1.5800 signals that the upside remains favored on short-term and it may be broken if the Euro rebuilds momentum above 1.5700. Below 1.5640 would provide strong bearish momentum and we will look forward for a test of the key support of 1.5550-80. Current quote is 1.5738 @06:16 GMT
Support levels: 1.5700, 1.5640, 1.5580, 1.5550 and 1.5470
Resistance levels: 1.5755, 1.5800, 1.5840 and 1.5900-05
Market sentiment: long-term : bullish, mid-term : bullish, short-term : slightly bearish
