By Russell Glaser – Yesterday’s sharp appreciation in the EUR/USD signaled a fundamental shift in the trend of the pair.
The price made a close above the downward sloping trend line that has held since December of 2009. This is considered a significant breach of the long term trend line and the beginning of the uptrend that began in early June.
A distinct bullish channel has formed from the swing low on the chart beginning in early June where the pair has traded consistently. The lower line of the channel should now serve as the new uptrend line.
The near term resistance is yesterday’s high of 1.2740, noted by R1 on the chart. As such, the next target for the pair rests at the resistance line of 1.3090 at R2.
Supports for the uptrend come in at 1.2525, noted by S1, along with 1.2350 at S2.
The previous long term downward sloping trend line can also act as a support. If the price does retrace back to the old trend line, it could create a good setup to go long on the EUR/USD.
Forex Market Analysis provided by Forex Yard.
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