Eur/usd Daily Outlook - Forex Forum

EUR/USD's rally extends further to 1.3499 today and is now pressing medium term falling trend line resistance (1.6038, 1.4867, now at 1.3467). At this moment, intraday bias remains on the upside as long as 1.3250 minor support holds and further rise should be seen to 100% projection of 1.2329 to 1.3290 from 1.2549 at 1.3510. Though, as price actions from 1.3239 is still treated as correction in the medium term down trend only, the current rise is still expected to be limited below 1.3768 cluster resistance and bring down trend resumption. Below 1.3250 will flip intraday bias back to the downside for 4 hours 55 EMA (now at 1.3033) first.
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Bias:
I suspect a peak around 1.3463-73 and for a correction lower else a deeper rally is likely

Daily Bullish:
The 1.3254 support basically held on Friday and has generated gains that have broken above Friday's 1.3404 high to approach the 1.3463-73 resistance. With bearish divergences developing there is potential for a pullback while this resistance caps. Thus for any stronger bullish stance we shall need a break above 1.3475 and only then would I look for gains to extend further to 1.3534 at least and probably 1.3595. Again, take care here as a pullback is possible. Next resistance is then found at 1.3669 and then the stronger 1.3732-66 area.

This post has been edited by flyersummer: Dec 15 2008, 13:46