EUR/USD Faces One More Round of Seven Week Old Consolidation

Currently the U.S. Dollar Index has been contained in a very harmonic price action pattern. Its structural formation is much cleaner than any currency pair amongst the top five. If the 80.70 level does not reject on a 1 hour candle (currently 80.24) then indeed the US Dollar is in for a multi-week bullish pattern which is likely to show very aggressively in the EUR/USD and GBP/USDS. The Index is perched on support immediately at 84.20 with key but critical support at 79.50 in view.

I would prefer to see the EUR/USD and GBP/USD make one more blush at higher resistance before developing a potentially aggressive bear pattern. The EUR/USD game is a 3980/3900 yardstick and then we should have a verdict.

Resistances: immediate at 1.3957-77, 1.3997, 1.4008, 4037-55, 1.4079, 1.4103-4149, 1.4200 and then 1.4300

Supports: immediate at 1.3928-14/07, 1.3883-64, 3853, 1.3780, 1.3743, 1.3670 and then 1.3349

We have Forex Market Timing Alerts for price action on:

Monday July 13^th 12:40 a.m. – 1:15 a.m. for 3.5 hours duration moderate price action

Monday July 13^th 5:50 a.m. – 6:25 a.m. for 2.75 hours with moderate price action

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This entry was posted on Sunday, July 12th, 2009 at 5:23 pm and is filed under Forex Market Updates, Trading Signals & Strategies. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.