The EUR/USD’s tough climb ahead

The EUR/USD continues to hold support but is struggling to push to new highs after a fifth session of trading within the narrow range from 1.2932 to 1.2733. The stall that the daily chart is in came just after a strong pullback on August 11 and the bulls have yet to recover. The resistance that is waiting overhead can be seen clearly on the 240-minute chart. The Channel Up pattern reversal through 1.3217 (that included the sell-off from August 11) trended lower to the Forecast between 1.3052 and 1.2917 (F). This support level was quickly broken and has subsequently become resistance that has been tested four times on the 240-minute chart.

Thumbnail image for 8-18-2010 DAILY FOREX.png

For the EUR/USD to resume the uptrend it had previously be in on the daily time frame, it will have to overcome this thick layer of selling pressure and establish buying support above 1.3050. The series of higher highs could offer some near-term momentum however with the intraday time frames showing that the market cycle has shifted in a narrow, sideways range keeping an unbiased view of the EUR/USD next intraday move will be the most prudent course of action.

  • prague-trader

    A very prominent bearish weekly bar was created last week.
    I am short from 1.29 which is what I am anticipating was the highest retrace level. It was a major supply zone.

    EU has 2 days left to paint a bar which sits below last week’s bear bar.

    See charts for more: link to meetpips.com

    Follow me on Twitter: link to twitter.com

  • prague-trader

    A very prominent bearish weekly bar was created last week.
    I am short from 1.29 which is what I am anticipating was the highest retrace level. It was a major supply zone.

    EU has 2 days left to paint a bar which sits below last week’s bear bar.

    See charts for more: link to meetpips.com

    Follow me on Twitter: link to twitter.com