Wednesday, December 15, 2010

EURUSD equality amidst 1.3440 - 1.3230 range

Daily Chart makes for a downward trend channel so far.

Weekly Chart shows a giant Wedge in the making but the last top around 1.42 failed to test the Resistance Trend line so it adds an overall bearish sentiment to the big picture.

Price action is struggling below all major MAs (21 - 55 - 144) and it implies that if the 50% Fibonacci level (1.3433) of the last move is not regained decisively (which is a confluence Resistance area along with the 21-Week MA at 1.3372) a test of the latest base around 1.26 is following.

Monthly chart shows the significance of the 144-Month MA which held the last move down to 1.19 which coincided with the 50% Fib retracement.

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