4 January 2010
EUR / USD technical analysis
An attempt to test the 1.4230 support, mentioned in the previous comments, yet ended at the level of 1.4250, the price began to rise and now is trading at the resistance of 1.4330/40. Perhaps, the “Bulls” decided to test the broken trend line (blue line) as for the resistance in the 1.4440/50 price area but it does take a fixation above 1.4330/40 and the indicators do not show an excessive optimism regarding the continuation of growth. However, the breakdown of the testing resistance will provide the base to wait for the growth up to levels of 1.4430/40. The increase above 1.4500/10 is still unlikely to be seen. At the same time, if it happens, there would be strong arguments to question the capacity of the “Bears” in the medium term.
The situation does not give a reason for definite assumptions and the most logical option would be to stay out of the market. 
Analysis prepared by:
Arkady Nagiev
Forex4you analyst
<< Back to "Technical analysis"
