By Russell Glaser
The crossing of the 50 and 100-day moving averages hints at an extension of the current move.
As the EUR/USD continues to rise, the major moving averages are providing support for the move. Yesterday the 50-day simple moving average (green line) crossed above the slower 100-day moving average (red line), a signal many trending strategies use to identify the direction for trades.
Following this cross, the moving averages are now aligned in a perfect order, with the 20-day moving average above the 50, 100, and 200-day. This indicates a strong trending environment. As such, traders should be looking for further gains in the pair.
First resistance comes in at yesterday’s high of 1.3780. The next resistance level is found at the February high of 1.3860. The trend line falling off of the January 2010 line may come into play down the road. Today that level stands at 1.4150. The November 2010 high of 1.4280 would be a long term target.
Support is found at the rising trend line which comes in today at 1.3560, followed by the February low at 1.3430, and the rising trend line off of the June and January lows.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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