EUR/USD: Euro should test resistance at 1.3553 this month

Tuesday, May 5, 2009

The Euro has reached a 1-month high at 1.3435 on its recovery from 1.2985 low on April 28, and, according tio Nicole Elliott, senior technical analyst at Mizuho Corporate Bank, the pair could continue climbing during the current month.

Elliot advances that the Euro could test 1.3553 level later in May: “Slow work last month as the Euro holds in a ‘flag’ formation. It is trying to break higher and should test trendline resistance and the 26-week moving average at 1.3553 this month.”

Successful move above the mentioned level would anticipate a rally towards 1.3739, according to Elliot: “A sustained break above here should add to current bullish momentum while a break above March’s high at 1.3739 should set off another round of short-covering. Weekly closes above these levels should turn momentum decidedly bullish for a squeeze to 1.4500/1.4700.”

0 comments:

 
Forex Online Resource. Design by The Online Helper