Best Financial Markets Analysis Article The recovery in EUR/USD from a Jun low has turned out impressive, with a second bull leg now well underway. This has started to reach certain interesting resistance levels which the market could find tough to overcome.

The FX Specialist view

WEEKLY CHART

Currently a 3-wave, corrective structure is unfolding in the recovery.

On this chart note the current 76.4% 1.4373 level as potential resistance, and note how a former 76.4% level was effective in late 2009.

DAILY CHART:

Recovery through the 1.3333 06-Aug high has now breached the bull channel top projection to test our next technical level at 1.4040, an equality target that extends the Jun/Aug upleg off 24-Aug low.

Temporary resistance would not surprise here, but the s/term chart structure remains very positive.

Possible stronger resistance is offered by the higher 1.4373 76.4% retracement level. Currently we view the recovery as temporary, within the context of a longer term bear trend.

First notable support comes from the 1.3333 06-Aug high but, at this stage, it wouldn’t be until the 1.3000 area was broken that bull momentum could finally be said to have dried up.

Mark Sturdy
John Lewis

Seven Days Ahead
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