Thursday, April 12, 2007

EURUSD potential monthly breakout..



As noted in a previous post, the downtrend line coming from the 1994 and 2004 highs on the monthly charts should pose strong resistance. After several days of testing the area just below the trend line (see the daily chart below), EURUSD managed to pierce it today. Nevertheless, on a monthly chart (above), this may be only a false breakout for the moment unless we see strong follow through beyond 1.3500. In case of a real breakout, the 2004 highs around 1.3665 and beyond should be reachable targets in the near future.

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