Best Financial Markets Analysis Article The 2009 uptrend in EUR/USD has struggled recently, coinciding with the test of a 76.4% recovery level. There seems to be something in the wind, but the bears need to produce more before we can confidently call for a pullback phase.

The FX Trader’s view

WEEKLY CHART:

So far the 76.4% recovery level has provided good resistance, and s/term reaction here has been negative.

Support from around the old Dec-08 high has come under pressure.

DAILY CHART:

Breach of a s/term bull channel base provided a preliminary bear sign.

And now we wish to see a close below the 1.4623 03-Nov low for a better signal – this would also see violation of the bigger bull channel base.

But the 23.6% level at 1.4510 would warn against chasing the market down from these lower levels.

However, at that stage we would be assuming that s/term strength was temporary ahead of further bear action.

Mark Sturdy
John Lewis

Seven Days Ahead
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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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