Greetings Fellow Traders!
Today we find ourselves in a nice uptrend on the EURUSD that has the likelyhood to lose some steam early on. We have seen over 200 pips of upwards movement of the Euro against the USD since this trend began on the 1 hour May 18th and around 750 pips since the last week of April. We can see the strong area of resistance on our daily chart below:
You will also note the oversold stochastics on this chart that signals a possible continuation upward may be in order. We do have a slight MACD divergence that may point to lower price action if it does not continue, which gives an overall mixed signal on this pair and timeframe. Overall bias is still to the upside. If we can break the tops on the daily, the next clear resistance is around 1.3900’s from 9-11-08.
Please note the very well marked trendline off support on the 5 minute EURUSD below, which further confirms our bullish outlook on this pair, you may need to zoom out a bit to see this solid trendline on your own charts, but it is impressive:
Here is a very zoomed out 5 minute chart as well:
Happy trading and be sure to visit us on FastPips.com for more!
Until next time,
Jason
www.FastPips.com
