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EURUSD

EURUSD continues to work its way higher within a 3-4 week uptrend channel, and just as we had forecast last week, the daily break above the 100-day moving average eventually led to another visit to major 1.3000 resistance (high 1.3007).

Also in line with our predictions, the bulls have had to pause for breath on the first lunge at these lofty levels, a hiatus that has allowed the pair to drift back down to an intraday low of 1.2871. Should the bullish momentum resume, the levels to watch above remain at 1.3000, 1.3035 (uptrend channel resistance) and 1.3093 (10 May high). We however still feel that current levels are a bit rich to entice us back into longs, especially considering the shooting star pattern seen on the daily chart on Friday which suggests a reversal is possible. Instead, we look for a deeper correction back towards 1.2800 before we step back in.

Nearest supports are seen at 1.2911 (100-day moving average), 1.2871 (today’s low), 1.2780 (a former pivot), and 1.2683 (last Wednesday’s low).

EURUSD continues to work its way higher within a 3-4 week uptrend channel, and just as we had forecast last week, the daily break above the 100-day moving average eventually led to another visit to major 1.3000 resistance (high 1.3007).

Also in line with our predictions, the bulls have had to pause for breath on the first lunge at these lofty levels, a hiatus that has allowed the pair to drift back down to an intraday low of 1.2871. Should the bullish momentum resume, the levels to watch above remain at 1.3000, 1.3035 (uptrend channel resistance) and 1.3093 (10 May high). We however still feel that current levels are a bit rich to entice us back into longs, especially considering the shooting star pattern seen on the daily chart on Friday which suggests a reversal is possible. Instead, we look for a deeper correction back towards 1.2800 before we step back in.

Nearest supports are seen at 1.2911 (100-day moving average), 1.2871 (today’s low), 1.2780 (a former pivot), and 1.2683 (last Wednesday’s low).

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